MP’s concerned over Eskom’s proposed 36% electricity hike

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Members of parliament(MP) have rejected Eskom’s proposed 36% electricity hike and raised concerns on increase which they said will devastate already struggling households.

The National Energy Regulator of South Africa (NERSA) granted Eskom’s application to retrospectively recover R8 billion for the 2021/2022 financial year.

Addressing the National Assembly on Thursday during a debate on electricity hike, RISE Mzansi caucus whip, Makashule Gana said it feels good that it has been over 150 days since we last had rolling power blackouts.

He attributed this to the new leadership at Eskom and further stated that it shows that when you have competent managers and leaders, provide them with support but not interfere with their work.

“The support Eskom needs must also come from this House. Yes, South Africans are suffering under the yoke of the high cost of living.

“People can’t put food on the table, and asking them to pay a higher price for electricity is another blow – but we are called upon to make tough decisions that will move us forward.

“This House cannot speak from both sides of its mouth. We cannot deny Eskom, the revenue recovery it needs while also allowing municipalities to consume Eskom electricity without paying for it.

“R81-billion is a lot of money, and yet by 2026 it could be R100-billion. We cannot approve a national budget that allocates little new funds to Eskom, but we complain when there is a price increase.

“We have an energy mix that now includes renewable energy from different geographical
areas than where our transmission lines are situated,” he expressed.

Gana highlighted that we don’t just need new or better power stations but new transmission lines costing hundreds of billions of rand.

He continued; “The funds required for the task are hard to find, but part of our responsibility here is to
provide sure that we appropriately support our national objectives while protecting the livelihoods of South Africans.”

ActionSA MP, Malebo Kobe, emphasised that these combined increases will further devastate already struggling households, making basic electricity an unaffordable luxury for millions.

Eskom’s tariffs skyrocketing

She said it will strain businesses, and further weakening our fragile economy, with South Africans expected to pay 40% more for electricity.

“From 2007 to 2022, Eskom’s tariffs have skyrocketed by 450%, vastly outpacing inflation, which increased by 129%.

“This disproportionate quadruple rise in energy costs has crippled household budgets, forcing South Africans to make impossible choices between paying for food or electricity.

“These escalating prices reflect the unchecked inefficiency of the Eskom monopoly, which continues to pass the cost of its corruption and ineptitude onto the public,” she remarked.

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Kobe cited that to make matters worse, unscrupulous municipalities are exacerbating this crisis by charging exorbitant electricity availability surcharges and tariffs.

She added; This demands that the planned tariff increases be immediately scrapped and ActionSA is committed to fighting for an energy system that is more affordable, stable, and sustainable.

“To achieve this, Eskom’s operational efficiency must be improved, and we must decisively deal with
cable theft, vandalism, illegal connections, extortion and most importantly, corruption.”