NCF 'shocked' by Nersa move

Johannesburg - The National Consumer Forum (NCF) on Friday said it was "shocked and dismayed" at the decision by the National Energy Regulator of South Africa (Nersa) to allow an electricity price hike of 31.3%.

Labelling the move as hugely damaging to consumers and the economy as a whole, the NCF said the regulator's decision suggested that Nersa "ignored most of the input it received during the recent hearings".

"To allow an increase of this magnitude, in the face of economic recession and public opposition across the board, is both callous and irresponsible," said NCF chairperson Thami Bolani.

He said raising prices by three times the inflation rate makes a mockery of government's attempts to control inflation, and to provide affordable access to electricity.

"While Eskom sells power to industry at discounted rates, it has been raising the price to consumers by about 60% since the beginning of last year," said Bolani.

"This discrimination is unacceptable - it is unfair to expect the consumer to bear disproportionate responsibility for Eskom's expansion costs, which is what we are doing at the moment," he said.

The NCF will be holding a public meeting in Soweto on Saturday, where responses to this issue will be discussed.

"The consumer has every right to feel betrayed by the regulator on this score," said Bolani.

"They have ridden roughshod over the legitimate concerns raised by consumers, acting as Eskom's rubber stamp," he said.

NCF also pointed out that Nersa would not allow one of its representatives to attend the press conference held to announce the price hike on Thursday.

It said its representative was not permitted into the auditorium where the statement was made and was instead "put in a room with the media, to watch the announcement on a TV monitor".

The forum said earlier this month, Nersa had avoided hearing the NCF's submission on Eskom's requested price hike by closing the hearing before the NCF's scheduled time-slot.

- I-Net Bridge