DA urges NERSA to reject Eskom’s tariff hike request

12 November 2015

The DA denounces attempts by Eskom today to recover an additional R22.8bn from consumers via the regulatory clearing account (RCA). This is nothing more than rear-guard action to obtain the tariff increases it was denied by NERSA in June this year.

Therefore, the DA calls on NERSA not to approve any further tariff increases until such time as Eskom can prove that its requests for additional funds are legitimate and are not simply being requested to cover for Eskom’s continued inefficiency. 

Eskom claims it needs to recover these additional costs following its increased expenditure on diesel to power its diesel peaking plants in order to keep the lights on and avoid load-shedding.

This is a dubious assertion at best as answers to parliamentary questions clearly indicate that South African energy demand is now below 2006 levels with an additional saving of 2000MW – 3000MW having being acheived during the course of 2015. 

Evidence suggests that it is this energy saving of 2000MW-3000MW and the decline in energy demand that is responsible for halting load shedding, not any specific action being taken by Eskom. Eskom’s claim for the need to recover additional funds from the consumer to cover costs incurred to prevent load shedding is therefore, dubious at best and completely misleading at worst. 

Further, a decline in energy demand by definition would be accompanied by a decline in Eskom’s own demand for diesel. 

It is clear that Eskom’s story just doesn’t hold up to scrutiny.

Eskom and government must realise that the South African people are not piggy bank to be abused.

The DA urges NERSA to stand firm in protection of the best interests of the South African people. 

Statement issued by Gordon Mackay, DA Shadow Minister of Energy, 12 November 2015