Cape Town to reject Eskom’s price increase application

Cape Town Mayor Geordin Hill-Lewis says his city will reject the proposed electricity price increase by power utility Eskom to the National Energy Regulator of South Africa (Nersa).

Nersa held virtual public hearings with relevant stakeholders to determine how much more consumers are prepared to pay for electricity.

The power utility has applied for the 20.5 percent increase for the 2022/2023 financial year.

Hill-Lewis, who was part of the meeting, says the tariff increase is unrealistic for consumers.

“We reject the proposed tariff increase of 20.5% because we believe it is simply unaffordable, unfair and unjust to the South African public in general and to Capetonian families in particular. The heart of our objection is simply the inability of the public at the moment to absorb any further increases in tariffs and costs.”

Koeberg’s maintenance

Eskom General Manager Calib Cassim says ongoing supply constraints are likely to increase as Koeberg’s unit 2 will be shut down for five months for maintenance, hence the increase.

“To understand what it means as a consumer you (Nersa) didn’t express that allowable revenue over a service volume number. You will then get your cents per kilowatt and then you compare it to your current cents per kilowatt to determine the price increase. So what we are discussing here is allowable revenue that we have asked for. But to understand in the expressed to what consumer implications are, you then express it as a percentage.”

NGO says Nersa must refuse Eskom’s application

The South Durban Community Environmental Alliance which is an NGO consisting of 21 community and environmental groups – has slammed Eskom’s application and says Nersa must say no.

Alliance’s Desmond D’Sa gives reasons for their refusal to accept the increase: