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Pylons carry electricity from a sub-station of state power utility Eskom outside Cape Town in this picture taken March 20, 2016.
Eskom’s proposed increase in electricity tariffs has been opposed by various stakeholders as well as members of the public. Nersa’s public hearings on Eskom’s proposed electricity tariff hike are under way in Cape Town.
The hearings started today and will end tomorrow in the Mother City, before moving to other parts of South Africa. Eskom has applied to Nersa to approve a 36 percent electricity price hike from April next year.
This as part of Eskom’s Sixth Multi-Year Price Determination revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
Residents have expressed anger and frustration over the proposal, saying they’re already struggling to keep up with the current rate.
Nersa’s public hearings provide a platform for interested stakeholders and the public to engage with Eskom’s plans to increase the price of electricity
Which many organisations as well as members of the public are opposing.
The increased electricity costs would add to the cost of living for South Africans, which is already high.
“There must be mechanisms to address the vulnerable sectors be it commercial or residential consumers and there are elements like the retail tariff plan. Let’s remove the inclining block rate mechanism so when you buy electricity for the entire month. You get the same units currently as you buy more you get less units so that’s the first thing secondly, I think the issue around the free basic electricity quantum is a key component that government needs to look at and what they can afford in balancing this,” says CFO of Eskom Calib Cassiem.
Various government officials, NGOs, Nersa representatives and members of the public will be making submissions throughout the hearings.
“We haven’t had electricity. We’ve got real issues around electricity and then these prices are just killing people. The household income is just being affected every day it’s not as if this is a once off this happens every single time its way above the inflation rate and people just cannot afford it,” says Alan Winde, Western Cape Premier.
The City of Cape Town says it will consider taking legal action if the proposed increase is granted.
“On behalf of the public, we reject this increase completely however if they do go ahead with it we will have to consider every available option including legal recourse because it’s just not right, it’s totally unfair,” says Geordin Hill-Lewis, Cape Town Mayor.
Eskom says it believes the increase it is asking for is justified.
Nersa will be interrogating all the submissions during proceedings.
“Our role is to strike that balance of ensuring that Eskom is sustainable and also ensuring that the electricity prices are accessible and affordable to the public in general. So, it’s a very delicate balancing act that the energy regulator has to play in terms of making a determination in terms of these prices,” says Charles Hlebela, Head of Communications at Nersa.
The hearings are scheduled to be held until 4th December in all provinces.
Video: Nersa Public hearings kick off in Cape Town
