Eskom's 34% price hike slated
May 15 2009 20:35
Johannesburg - The Congress of South African Trade
Unions (Cosatu) said on Friday that it is "totally opposed" to power utility
Eskom's proposed 34% electricity tariff increase and urges National Energy
Regulator of South Africa (Nersa) to reject it.
"Such a massive increase would inflict misery on thousands of poor
households, especially as there is not yet a tariff policy that protects poor
consumers, many of whom would have to give up using electricity at all, faced
with such a rise in their cost of living," says Cosatu.
It adds that a 34% increase would also hit hundreds of small and medium
businesses who are already struggling with the effects of the global financial
crisis.
"Many might be forced to close their doors and retrench workers, further
exacerbating a trend towards recession which is already under way."
Cosatu reiterated that while it is not opposed to an increase that just
reflects genuine increases in running costs, which should correspond to the
current rate of inflation of 8.5%, consumers should not have to shoulder
Eskom's capital cost of building new generating capacity.
"This must come from government, who failed to provide these funds in the
late 1990s despite Eskom's warning that there would be a crisis if they were
not given the money at that time," says the union.
Cosatu says labour will continue to discuss these issues in the National
Economic Development and Labour Council (Nedlac) and will strive to reach an
agreement with government and business, but cannot rule out further mass action
should an excessive tariff increase be imposed regardless.
- I-Net Bridge
