Joburg mayor slams Eskom hike

Johannesburg - The 24.8% electricity tariff increase granted to Eskom last week was unacceptable and would severely affect the poor, the City of Johannesburg said on Monday.

"The City of Johannesburg is extremely disappointed by the 25 percent hike in electricity prices for three successive years approved by the energy regulator, Nersa," mayor Amos Masondo said in a statement.

"A price hike of more than four times the rate of inflation is unacceptable to consumers. We trust that Eskom will reconsider this proposal before a final decision is taken."

Masondo said tariff increases of 24.8 percent from April and additional increases of 25.8 percent in 2011 and 25.9 percent in 2012 would have a "severe impact" on poor households, as prices of other essential commodities would also increase.

"This is a blow for the people of Johannesburg, both residents and the business community."

The city was put in an "unenviable situation" as it received the bulk of its electricity from Eskom.

"We will have to assess the situation very carefully and look at ways to absorb some of the increases before passing it on to consumers. We will also continue with our efforts to roll out alternative energy solutions within the city of Johannesburg."

- Sapa