Public against Eskom hike
An increase could cause a spike in non-payment and theft
THE 19.9% tariff increase sought by Eskom threatens to increase non-payment and theft of electricity by communities, the National Energy Regulator of SA (Nersa) has heard.
Nersa held a public hearing on the power utility’s increase application in Midrand yesterday. The public’s opposition to the proposal was evident at this session.
Eskom wants South Africans to pay 19.9% more for electricity next year. Opposing the proposal, the SA Local Government Association (Salga) maintained the increase would effectively shoot up electricity bills for households by 27.29%.
In its submission to Nersa yesterday, Eskom said the proposed increase was necessary for its financial sustainability.
While Nersa was hearing submissions rejecting the increase, a group of Numsa and United Front (UF) members protested outside the venue. They held placards calling for a 0% increment.
Joburg’s City Power has seen the relationship between tariff increases and theft of electricity, its senior official Lonwabo Magida told Nersa. “It talks to affordability,” he said.
Matshidiso Mfikoe, an Alexandra councillor, told Nersa an excessive increase does not encourage payment by consumers. “It continues electricity theft.”
She urged Eskom to take into account the unemployment levels of the country. “Poor communities can’t even afford to pay for electricity.”
Speaking to The Star, Salga’s energy expert Nhlanhla Ngidi supported the view that the increase could cause a spike in non-payment and electricity theft.
“When we talk about theft, that will increase. It should not come across as (if) we’re saying people are justified to steal electricity because it’s increasing. But it’s a fact that theft will increase,” Ngidi said.
“When people start not to afford things that they were used to, they start finding other ways of getting them, which include stealing.”
Ngidi urged Nersa not to grant the increase. “It’s unaffordable. Municipalities can’t take anything that’s a double digit at this point in time. We’re struggling.”
He told The Star Salga was recommending an inflation-related increase for Eskom. For a one-year period, a 19.9% increase would be “too exorbitant”.
“With the current economic landscape that we have, we can’t afford any double-digit increase.
“In fact we can’t afford an increase. But it’s obviously impossible to have a 0% increase because the cost of living and production are increasing,” added Ngidi.
Eskom does not deserve anything but a 0% tariff increment, the protesting Numsa and UF members maintained.
Oupa Ralake, Numsa’s regional secretary in Johannesburg, said granting Eskom an increase would exacerbate job losses.
“Currently, most companies are struggling. The state of the economy is compromised, so most companies are closing down and workers are getting retrenched,” said Ralake.
“We don’t see any necessity for Eskom to be granted any percentage increase. Some of our people never even got increases from their employers because of the state of the economy.”
The UF’s Trevor Ngwane said the power utility should not get the increase because it was evidently failing to manage its finances.
“We don’t think that Eskom, politically and morally, deserves an increase because of the shambles it’s in,” he said.
“What’s very demoralising is the public protector’s report on state capture which showed clearly that Eskom is being used as a conduit to enrich the Guptas and other crony capitalists. Eskom does not deserve an increase. In fact, it owes the people of South Africa an explanation and money back.”
The state agency was now the subject of an inquiry by Parliament. The public enterprises committee is probing state capture allegations at Eskom.
Sean Maritz, Eskom’s interim group chief executive, assured Nersa the entity was taking bold action to restore good governance.
“We are instituting disciplinary charges and taking legal action if required. To date, we have suspended eight members of leadership who have allegedly been involved in governance irregularities.”