Eskom’s 35% tariff increase hike strongly opposed

By Ofentse Mokae
19 January 2010

The Federation of Unions of South Africa has suggested that Eskom reviews it’s Business Model in order to curb the burden on consumers as is the case with the 35 percent proposed electricity tariff increase.

The union says it believes the power utility’s use for consumers to cough-up an extra 35% for electricity over the next three years is unreasonable and unfair.

According to union secretary general Dennis George, Eskom’s move will mean that all households, even poorer households as well as businesses will be burdened with the notion that more money will be paid towards electricity even if less electricity is consumed.

George further goes on to say that the union is of the opinion that Eskom Business Model needs to be reconsidered so that the increases should be reduced and perhaps the period of the increase be extended over more years.

Meanwhile a crowd of protestors picketed outside the Durban Exhibition Centre against Eskom's request for a tariff increase yesterday.

Officials from the National Energy Regulator of South Africa have been continuing taking in submissions and hearing comments from residents across the country.

The SA Institute of Electrical Engineers yesterday also came harshly, opposing the tariff , saying the proposed 35% tariff hike will lead to more illegal connections because electricity users won't be able to afford power.

Eskom's acting CEO Mpho Makwana said the tariff was intended to cover the cost of the current electricity supply, adding that the power utility experienced massive financial shortfalls.