Political parties in the National Council of Provinces in Parliament have expressed mixed reactions to the proposedThe National Energy Regulator of South Africa gave a go ahead for the power utility to hike the electricity by 36.1% retrospectively.ANC delegate in the NCOP, Sylvia Sithole, sought to protect the move by Eskom and NERSA.
“Essential Eskom tariffs that are determined by NERSA have been insufficient to cover the prudent and efficient costs that the national utility incurred to supply electricity to customers and also provide a fair return on capital. Consequently, Eskom has been forced to increase reliance on debt and government guarantees to fund the revenue shortfalls.”
Speaking during the debate, Eastern Cape MEC for Cooperative Governance and Traditional Affairs, Zolile Williams, said the decision failed to take into account other factors such as poverty. “NERSA’s recent decision to approve a retrospective tariff increase for Eskom aimed to stabilised the utility’s finances. However, this move has triggered unintended and far-reaching consequences for vulnerable households and small businesses. This decision is being implemented at a time when South Africans are grappling with the rising costs of living crises, mud by high inflation, stagnant wages and persistent energy security.
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