Mixed re-actions on electricity tariff increases

By Ofentse Mokae
24 February 2010

Following NERSA's announcement this morning to allow Eskom an average increase in tariffs of 25-percent per year over the next three years, many organisations met the decision with mixed sentiments.

The African National Congress congratulated the energy regulator for not conceding to Eskom’s full application of three 35-percent increases.

However its alliance partner the SACP said the decision is a shattering betrayal to the country’s poor people who bear the brunt of the “pursuance of a neo-liberal economic regime” that did not encourage increased state investment where it mattered the most.

“That the majority of our people are expected to pay for the blunders of the elite is indeed very sad, government ignored well timed and considered advice to invest in the infrastructure development projects of Eskom and it is incorrect to continue to punish the poor for this,” the party said.

The ACDP MP and spokesperson on economic matters, Steve Swart said today he was disappointed by the increase which, although lower than expected, will still have a huge impact on consumers.

“The ACDP is disappointed at the NERSA tariff increase of 24,8%, which, whilst being more realistic than Eskom’s call for a 35% hike, will still have a huge impact on consumers,” Swart said.

Numsa added fuel to the burning fire saying: “these increases will jeopardize the developmental agenda as encapsulated in the ANC Elections Manifesto with its major priority focus of creating decent work and sustainable livelihoods”.

NERSA chairperson Cecilia Khuzwayo this morning said, due process were followed in inviting comment at public hearings before the decision was made to allow Eskom an average increase in tariffs of 25-percent per year over the next three years.

Eskom had first asked for three increases of 45-percent each, and then lowered their application to 35-percent.