GOOD party wants CoCT to lower its electricity price hike of 17.6%
The GOOD party wants the National Energy Regulator of South Africa (Nersa) to reject the City of Cape Town's electricity tariff hike of 17.6%, which came into effect on 1 July 2023.
Eskom increased its tariffs by 18.65% for the 2023/24
financial year.
Municipalities could however increase their tariffs higher than the proposed guideline of 15.1%. NERSA rejected eThekweni municipality’s proposed tariff hikes of 18.49%, and was only granted a 15.1% increase.
PICTURE: PixabayGOOD party councillor Anton Louw said NERSA should do the
same for the City of Cape Town
‘’It is time for the City of Cape Town to show leadership,
dig deep into their budgets and do what they can to assist hard-pressed
consumers. Even if the city had to apply a zero percent increase, it will still
make a surplus due to the big difference in revenue and bulk purchase of
electricity,’’ said Anton Louw, GOOD Cape Town Councillor Responsible for
Finance.
‘’Now is the time for Mayor Geordin Hill-Lewis to lead by
example, follow his own advice to ESKOM, and, dig deep into their budget, weed
out historical but non-essential allocations, and give the people a break. In
the end, we have a duty to provide services efficiently and reliably, and to
ensure they are provided affordably to everyone, with support for those
households and individuals that need it most,’’ he added.
The City of Cape Town has defended its recent electricity
tariff increase. The municipality said that Nersa's tariff guidelines had
already proven to be unlawful and invalid.
Mayco member for Energy, Beverly van Reenen, said the key
issue remains the Eskom tariff hike of 18,5%.
‘’ Nersa’s tariff benchmarking methodology has
already been reviewed and ruled unlawful in two High Court judgments. Nersa is
applying the benchmark methodology now for the last time.
‘’The City would run an estimated budget shortfall in
excess of R500 million based on Nersa’s guideline tariff increase. This
shortfall would make it impossible and unsustainable for the City to run a
reliable electricity service and implement plans to end load-shedding,’’ added
van reenen.
In response to van Reenen, GOOD party’s Anton Louw maintained
its call that Nersa must intervene and stop the City of Cape Town from placing
a tariff hike.
‘’The comments made are laughable and shows how out of
touch the DA is with the daily realities faced by the city’s poor and
middle-income households. By her own admission the city would run a loss of
R500-million if they implemented the proposed 15.1% hike. What she fails to
mention is the city is sitting with a surplus of just under R10-billion in the
bank. Municipalities must raise revenue in order to operate essential basic
services, but they do not need to run at a profit.’’
‘’ The original proposal by Nersa was for an 18.6%
increase. At the time the city then reduced their increase to 17.6% and told
Capetonians that the city in effect would subsidise the difference. However,
when Nersa released their final 15.1% increase, the City of Cape Town did not
align their increase like most other municipalities. This is a big blow to
residents, especially poor and middle-income households,’’ added Anton Louw,
GOOD Cape Town Councillor Responsible for Finance.
Louw described the increase as unfair, unaffordable and
unjustified.
According to EWN, NERSA could take about four months to finalise its investigation into the City's tariff increase
Done By: Mitchum George
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