Johannesburg - Complaints about Eskom's approved electricity price hike
continued to build on Thursday with the Democratic Alliance calling
for significant energy sector reform.
DA shadow minister of energy Sejamothopo Motau lashed out at the
National Energy Regulator of SA (Nersa) saying it promoted an
uncompetitive and inefficient energy sector.
"The DA has stated repeatedly that a tariff hike of this nature
will have vastly detrimental consequences for South Africa's
poorest citizens."
Earlier on Thursday Nersa approved a 31.3% hike in
prices, just under the 34% Eskom had asked for.
"We are deeply concerned that government is sitting idly by
while the fundamental problems within Eskom, and the energy sector
more broadly, are not adequately addressed."
He said Eskom's financial problems were not in dispute but the
hike was cause for concern when Eskom management received bonuses
of over R50m over the past four years.
"The solution to our energy sector woes is not an endless
sequence of ad hoc tariff rises, but real root and branch reform of
the energy sector.
"In light of this we believe that Eskom's monopoly, as sole
producer and distributor of power, should be revisited urgently,"
he said.
Trade union UASA said the increase would be "devastating" for
consumers.
UASA spokesperson Andre Venter said it was a blow to consumers and
industries already reeling under the pressure of economic
"meltdown".
"Consumers are losing hope, they simply won't be able to carry
the extra burden. Industries struggling to keep head above water
will be hit hard and I suspect many businesses will find it hard,
if not impossible, to recover from this."
Meanwhile, local government said there was a need to reconsider
free basic electricity subsidies.
The SA Local Government Association (Salga) said it was
"delighted" that Nersa had taken cognisance of its submissions that
applications must be submitted on time.
This was in response to Nersa chairperson Collin Matjila's comment
that he hoped "ad hoc" submissions would be a thing of the past.
However, Salga said the increase meant more households would be
unable to afford energy - given the current economic climate -
and this move would see more households falling into the indigency
net.
"It also increases the cost of supplying free basic electricity
to indigent households and this will have a negative impact on
municipal financial viability."
To mitigate the negative impact, Salga appealed to Treasury to
increase the subsidy for free basic electricity allocated to
municipalities.
"The subsidy increment will assist municipalities to remain
financially viable as they grapple with the crippling debt
situation," said the association.
- Sapa