Eskom rebuffed

THE Cape Chamber of Commerce and Industry has rejected Eskom’s plans to increase electricity tariffs. After years of expecting consumers to bear the brunt of electricity price hikes, amidst ongoing rumours and allegations of corruption, maladministration and misuse of power, Eskom has announced it’s intention to increase electricity tariffs by a whopping 19.9% in 2018.

The Chamber has approached the National Energy Regulator of SA (Nersa) wth its objections. The shocking increase in tariffs would be counter-productive and lead to a further loss of sales and defections from the electricity grid, the Chamber says.

Public perceptions of the failure of the country’s electricity public utility to act in the interests of the people of South Africa, fuelled by ongoing media reports, are widespread.

It would be grossly unfair to expect cash-strapped consumers to continue to fork out even more for electricity and pay for the inefficiencies and shortcomings at Eskom, the Chamber says. Consumers pay their hardearned money in taxes to fund Eskom and the idea that they need to rescue the power utility from its self-inflicted predicament is absurd.

The Chamber further called on Nersa to complete a detailed study of the forensic investigation reports at Eskom before it made a decision on whether to hike tariffs. This is essential. Janine Myburgh, president of the Chamber, said tariffs were determined to cover the fair and legitimate costs of producing and selling electricity and nothing else. She’s right.

“We strongly object to tariffs that cover the cost of irregular spending, corruption and mismanagement.

“According to Eskom annual reports, the utility spent about R10 billion on coal in 2007 and nearly R48bn in 2016 to generate slightly less electricity, despite the fact that World Bank figures showed that the spot price for thermal coal in US dollars in South Africa was marginally lower in 2016 than in 2007.

“Recently Eskom admitted to lying about multi-million rand payments to Trillian Capital,” Myburgh says.

Her statement must be taken seriously.

The Chamber’s call should be supported by the public at large so that we take back our country from those who continue to loot it at every opportunity.