'Base Eskom hike on inflation'

Midrand - Eskom's tariff increase should be determined by inflation, the Congress of SA Trade Unions told the National Energy Regulator of SA during the second day of public hearings on Friday.

"We propose that the inflation, that must be what Eskom should be given," said Cosatu representative Dumisani Dakile.

Dakile, who had the audience laughing through most of his presentation, said Cosatu could not suggest what the price hike should be.

"As workers we can all agree that when we asked for percentage increases we never get what we want. Workers strike for a month for a mere nine percent increase," he said to an "exactly" from an audience member.

Dakile suggested that instead of the proposed incremental 35% over the next three years, a once-off tax of 1% should be looked into.

He further challenged Eskom leadership to be transparent on what they earn, and consider receiving only half of their salaries once a year to pay into Eskom's electricity coffers. Dakile said it was untimely to implement a tariff increase while the country was still in a recession, and an increase could lead to illegal connections and non-payment.

It's [like] a patient in an intensive care unit and when he is starting to recover somebody stabs that particular patient," he said to a roar of laughter.

Many speakers had included in their submissions that the increase would result in job losses. However, Dakile said most had not noted that many jobs were already being lost.

The analogy was however challenged by the panel who revised it by adding that the patient, being in the intensive care unit, would also surely need oxygen, which needed to be paid for. "Who will pay for that?," a Nersa panelist asked.

To which Dakile responded: "The oxygen, get it from Eskom."

The Freedom Front Plus also contended that the proposed increase was premature and a moratorium on the price should be implemented in the short term.

"What we are asking for is more time. The decision made by Eskom is knee-jerk and hasty," said parliamentary MP Anton Andries.

He said problems in Eskom's finances needed to be more finely explored and added that the party felt farmers and households were carrying the load for electricity price subsidies to other countries, as well as non-payment by municipalities.

"Eskom states in its own report that it makes a loss in supply to certain categories. We must ask ourselves why. Who is footing the bill? To my mind it would be the households and the farmers," said Andries.

He said illegal immigrants had almost become regular customers through various ways, including illegal connections.

"We have unlimited demand with limited needs and resources. There are 3 million to 6 million illegal immigrants in South Africa.

"How will they [government and subsequently Eskom's problem] control population growth? We must think about South Africa first. Government must also reconsider our international policy," said Andries.

- Sapa