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Eskom hearings 'no smokescreen'

Jan 17 2010 12:44 Mpho Sibanyoni

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Johannesburg - The National Energy Regulator of SA (Nersa) on Friday defended the credibility of its public hearings on Eskom prices, which are scheduled to end on Thursday in Johannesburg.

"These inputs are going to be taken into consideration because we want to ensure that Eskom and its consumers are treated fairly in this process," said Nersa's spokesperson Charles Hlebela.

"We do consider the public comments before coming up with a final decision," he said.

Nersa is expected to announce its decision on February 24.

Hlebela said people who had made submissions in the process so far had not opposed the increase but had taken issue with the magnitude of the proposed raise.

"The key concern is that the proposed 35% increase for each of the following three years will cause many people to lose their jobs."

The hearings have been held in Northern Cape, Mpumalanga, Limpopo, Free State and North West.

This week they will continue in KwaZulu-Natal, Eastern Cape, Western Cape and Gauteng.

Hlebela defended Nersa after trade union Solidarity raised concerns about the value of conducting the hearings.

"Nersa should carefully consider all input and not just regard the hearings as a formality to get Eskom's application carried through," said the spokesperson for Solidarity Dirk Hermann.

"The full burden of the increase should not be placed on the shoulders of consumers. Eskom's largest shareholder, the government, should now step up to its responsibility and also contribute," Hermann said.

Robert Mhlambi, newly appointed National African Federated Chamber of Commerce and Industry (Nafcoc) chief executive, said the public hearings were vital in giving micro and small enterprises a chance to demonstrate how the tariff increase would put them out of business.

"Most SMMEs operate on a low margin and increasing the tariffs will mean the cost of running the businesses will be higher," he said.

"SMMEs, unlike big businesses, do not have flexible means of passing the costs on to consumers because this would render the small enterprises uncompetitive," he said.

- City Press

 
 
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