NERSA should tell Eskom that enough is enough
24 June 2015
The Democratic Alliance (DA) has today argued against the proposed 25.3% tariff increase being sought by Eskom from the National Energy Regulator of South Africa (NERSA).
NERSA has a responsibility as the independent energy regulator to send a clear message to Eskom that enough is enough. Eskom cannot continue to rely on state bailouts and exorbitant tariff increases to fund its continued mismanagement.
After two days of public hearings it is clear that there is an overwhelming consensus among businesses, the public and civil society that tariff increases are not welcome and will place an unfair burden on consumers.
The price of electricity has doubled since 2009 with tariffs rising with an average of 20% per year since 2008. Inflation over the same period has averaged out at less than 6%. Tariff increases are hurting ordinary South Africans and doing great damage to our economy.
The DA feels that NERSA has a real opportunity to bring about much needed reform at Eskom by denying Eskom’s latest request. It is only through allowing private sector equity in Eskom, and the introduction of competition into the energy sector, that South Africa will be able to achieve a stable supply of electricity and long-term price certainty.
The driving force behind the request for tariff increases is the delay in completing Medupi and Kusile that is forcing Eskom to make use of expensive diesel-fuelled turbines to minimise load shedding.
During the first 100 days of 2015, South Africa experienced 33 days of load shedding. Load shedding is killing jobs and constraining economic growth. Increasing the price of electricity will only serve to worsen the economic crisis and increase the cost of living for those who are already suffering.
Acting Eskom CEO, Brian Molefe, is holding a gun the South African consumers’ heads by giving them a choice between increased tariffs or daily load shedding. This is a false choice given the vast mismanagement taking place at Eskom.
The DA will not allow Molefe to hold South Africans to ransom. We will not stand for the unfair burden that is being placed on ordinary South Africans while Eskom fails to provide a stable supply of electricity.
Statement issued by Gordon Mackay MP, DA Shadow Minister of Energy, June 24 2015
