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Camden Eskom power station.
The Standing Committee on Public Accounts (SCOPA) has expressed serious concerns over Eskom’s skyrocketing electricity tariffs, with growing fears that the average South African can no longer afford the hikes.
During a briefing on Eskom’s financial statements for the 2023/24 year, the Auditor-General pointed to alarming financial mismanagement and inefficiencies at Eskom.
Despite these concerns, Eskom has continued to approve electricity tariff increases for the next three years. The SCOPA Chairperson Songezo Zibi says municipalities’ debt to Eskom have contributed to these tariff increases.
“The electricity tariffs came up in a discussion about the amount of money that Eskom is owed by municipalities partly because it all kind of comes together. By March of this year, municipalities will be owing as close to R100 billion. Now if Eskom has access to that revenue, it’s very likely that what they ask for is revenue recovery from NERSA will be less so that was one. The second is the debts have built up over the decades, Eskom pays billions per month servicing that debt, ” adds Zibi.
VIDEO | SCOPA deliberates on Eskom’s financial statements for 2023/2024 period
