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Saturday, October 5, 2024

Eskom’s ‘outrageous’ price hike proposal for Municipalities

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The City of Cape Town has expressed its concern at Eskom’s plans to hike electricity tariffs by an ‘outrageous’ 44% for Municipalities and 36% for their direct customers.

 

On Monday, 23 September, the National Energy Regulator of South Africa (Nersa) published Eskom’s Multi-Year Price Determination (MYPD) 6 for the period between 2025/26 to 2027/28.

 

READ: Eskom tables massive 2025 electricity price hike application

 

The MMC for Energy Xanthea Limberg says the City firmly rejects Eskom’s proposed 44% electricity tariff increase for Municipalities, which if approved, will worsen the living conditions for most residents, and severely hurt small businesses.

 

Last month, Mayor Geordin Hill-Lewis wrote to Nersa, calling on the national energy regulator to reject Eskom’s proposed 44% hike.

 

Limberg says it is unthinkable that an increase of such a magnitude is even proposed.

 

RELATED: Hill-Lewis rejects Eskom’s planned 44% tariff hike for Municipalities

 

She says the City is already bearing the brunt of Eskom’s rising tariffs.

 

”Some 75% of the City’s income received from electricity sales goes directly to Eskom. So any big Eskom increase has a profound impact on the City.”

 

Limberg also addressed the ongoing protests in Cape Town, linked to sustained Eskom tariff hikes, as residents and businesses struggle to make ends meet.

 

She has reiterated the City’s view that some of these protests, as seen in areas such as Lavender Hill, appear to be politically motivated with ”fake news doing the rounds”, attributing high electricity costs to newly installed prepaid meters by the City.

 

”What is actually hiding behind the protests and misinformation is that there have been City investigations into meter tampering, which is a way of stealing electricity. All meters belong to the City and the law empowers the City to have reasonable access to its meters. By far most of our customers in Lavender Hill and elsewhere in the city are not tampering or bypassing.”

 

The City maintains that prepaid electricity meters cannot increase electricity costs, they merely measure electricity consumption.

 

”Where tampered or defective meters have been replaced with new meters, customers will notice a change in their purchasing patterns as they will now be making payments toward their electricity consumption – so it will not be free as previously they used electricity without paying for it.”

 

ALSO READ: Cape Flats residents demand action against rising electricity costs

 

Residents who are struggling to pay have been invited to apply for the Lifeline tariff.

 

Meanwhile, residents can now make their voices heard about Eskom’s tariff hike application to Nersa.

 

Residents have until 1 November, to submit their written comment, while public hearings have been set down in the Western Cape between 18 – 19 November. Nersa is set to make it’s decision in December.

 

Written comments can be forwarded either by email to mypd@nersa.org.za; hand-delivered to Kulawula House, 526 Madiba Street, Arcadia, Pretoria, OR posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa.

 

For more information visit Nersa’s website.

 

Liesl Smit
Liesl Smit
Liesl is the Smile 90.4FM News Manager. She has been at Smile since 2016, with nearly 20 years experience in the radio industry, including reading news, field reporting and producing. In 2008 she won the Vodacom Journalist of the Year Award, Western Cape region. liesl@smile904.fm

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