Civil society organisations in KZN slam Eskom’s proposed tariff hike

Civil society groups say they are concerned that Eskom’s proposed 40% electricity tariff increase application will negatively impact the most impoverished and middle-income earners.

This comes as the DA on Wednesday held a national day of action against the proposed tariff hike, which, if approved, would be implemented next year.

In August, it was revealed that Eskom had applied to the National Energy Regulator of South Africa (Nersa) seeking approval for the hefty increase.

In a video on social media, DA KZN chairperson Dean Macpherson said the increase would be completely unaffordable.

“It’s crippling for business and it’s crippling for our economy. We need to stand together to make sure we fight back against these increases.

“It is just not possible that hard-working families across the country have to shoulder the burden of these sorts of increases.”

Evashnee Naidu, Black Sash’s regional manager in KZN, said she was concerned about the application by Eskom for a further increase in tariffs by 40%.

“Social grant beneficiaries and low-income earners, in particular, bear the brunt of these exorbitant increases where electricity becomes unaffordable.

“This leads to a situation of food insecurity in the households of the poorest of the poor as they are unable to buy, knowing that they may not be able to afford to purchase electricity for an entire month to preserve their food.”

Naidu said this also created a situation where households would have to choose between purchasing electricity and purchasing food.

“These are two of the highest costs that households bear in our country.

This current proposed increase is unaffordable and will put massive strain on the people of the country and exacerbate problems facing cash-strapped people.

“We call upon Nersa to reject this increase and to consider the impact that this will have on people.”

Mervyn Abrahams, director of the Pietermaritzburg Economic Justice and Dignity Group, said any increase in energy prices at a time when salary increases had not been in line with inflation was unfair on consumers.

“It basically suffocates them further. The implication is that with the proposed increase consumers will be forced to find money they do not have.

“And while Eskom may have a valid reason for increasing its tariffs this creates unnecessary pressure and could see more illegal connections.”

Abrahams said the national Treasury needed to look at a better funding model for the energy supplier that would make sure that while consumers paid, they were not driven to the point of being bankrupt.

“It is important to point out that energy supply is a basic human right.”

Dr Dick Forslund, from the Alternative Information and Development Centre (AIDC), said the proposed increase was outrageous.

“It is a consequence of decisions two decades ago to start to run Eskom as a private corporation. There can be no full-cost recovery in a company with a public mandate. Basic electricity is a fundamental right. You cannot price out half of the population.”

Wafaa Abdurahman, national co-ordinator for Fight Inequality Alliance SA, said people wouldn’t survive with the tariff increase.

“The impoverished are battling with just the Social Relief of Distress Grant which is not increasing. We have high unemployment and people can’t afford food. I can’t see how they will afford a tariff increase like this.”

The Mercury