The Cape Town Mayor, Geordin Hill-Lewis, says Eskom’s coming tariff increase of 9.61% is still too high.
It will come into effect on the first of April. Eskom had initially asked for a 20.5% increase.
Hill-Lewis says the increase is way above inflation.
He says, “While I am happy that Nersa took the voice of thousands of Capetonians into consideration, it must be noted that the increase of 9,1% is still nearly double what inflation is. Our message to Nersa was simple: Capetonians simply cannot afford above-inflation increases in the cost of electricity. Such increases are unfair, unaffordable and unjust.”
Support from government
Delivering his Budget Speech on Wednesday, Minister of Finance Enoch Godongwana announced that Eskom will be receiving support from the government as it remains in financial distress.
“To date, Eskom has been provided with R136 billion to pay off its debt with a further R88 billion until 2025/26. We acknowledge, however, that Eskom is faced with a large amount of debt that remains a challenge to service without assistance. The National Treasury is working on a sustainable solution to deal with Eskom’s debt in a manner that is equitable and fair to all stakeholders. Any solution will be contingent on continued progress to reform South Africa’s electricity sector and Eskom’s own progress on its turnaround plan and its restructuring. We expect Eskom to take further steps towards cost containment, conclude the sale of assets and implement operational improvements to enhance the reliability of electricity supply.”
Minister of Finance Enoch Godongwana’s Budget Speech:
