Balanced investment in infrastructure needed at Eskom, city says

By Ofentse Mokae
20 January 2010

During their hearings conducted at the Good Hope Centre in the city today, energy regulator NERSA heard concerns and received submissions regarding Eskom’s application for a tariff increase.

This forms part of the energy regulator’s country-wide hearings on Eskom’s application for electricity price increase over the next three years.

These hearings are held in addition to the call for written submissions on the tariff increase.

On top of the city’s written submission, Cape Town deputy Mayor Alderman Ian Neilson presented the municipality’s concerns regarding the tariff increase.

Neilson warned against an abnormally high infrastructure investment to increase generation capacity at Eskom.

Nielson said this is to the detriment of investment in other services or infrastructure and in other spheres of government.

“If investment in infrastructure is not balanced across all services, the shift of funding away from investment in other services would cause these services to hinder future economic growth,” Neilson said.

Neilson also warned that tariffs for the poor or those using a smaller amount of power must not be artificially suppressed.

Meanwhile the city’s mayoral committee member for Utility services Alderman Clive Justus, urged residents to consider solar water heater installation which could save up to 30% of the electricity usage in an average household while reducing harmful carbon emissions.

“This is because a traditional electrical geyser uses between 30% and 50% of all power consumed in the home,” Justus said.