Metro residents can’t afford hikes
Eskom applying for big increases
THE Nelson Mandela Bay Municipality (NMBM) undertakes to provide a safe, reliable and cost-effective electricity supply to its residents who are dependent on such a supply for their growth and prosperity.
Section 152 of the constitution of our republic behoves every municipality to ensure the provision of services to communities in a sustainable manner.
The purchase of power is already a burden for many of our residents, and for our commercial and industrial enterprises.
A municipality that provides a service that cannot be afforded by its communities cannot be said to be ensuring the sustainable provision of services.
Surely, then, the imposition of the increase requested by Eskom will lead to our municipality, and others, infringing the constitutional mandate that we are obliged to uphold.
The constitution further requires local government to promote social and economic development.
The growth path for the local economy and sustainable job creation is largely aligned to the availability of affordable and reliable electricity.
It is imperative, if Nelson Mandela Bay is to have any chance of achieving its future goals, providing opportunity for its citizenry, that the electricity tariffs must remain competitive.
Almost half of Nelson Mandela Bay’s young people are unemployed.
We have stated that we are open for business – business that can create jobs for our youth.
We are doing all that we can to provide an enabling environment for that business to prosper.
We simply cannot allow Eskom’s exorbitant demands to compromise the future of our city and its people.
Eskom, in our view, has a short-term outlook, which cannot accommodate competitive and attractive tariffs.
The costs of equally short-sighted decisions, taken in 2006-7, to build huge coal-fired power stations, are clearly now affecting Eskom’s ability to effectively serve South Africa’s needs.
An approximate 15% drop in sales over the recent term should be a clear warning that the monopoly is no longer the efficient provider it once was.
These warning signs, along with the clouds of mismanagement and corruption, are apparently ignored by Eskom decision-makers.
Sales forecasts are wrong. A further 1.5% growth is predicted, while history and well-informed global and national predictions show a definite (and quite possibly dramatic) decline in sales.
Eskom’s blinkered attempt to maintain its monopoly will lead to its ultimate failure, but this cannot happen at the expense of local governments such as our own.
No business innovation and/or alternate business models are being considered by Eskom.
Lack of foresight and planning are fast becoming the burden of the electricity users. We will not allow this.
Should consideration be given to the currently-proposed tariff, the impact on the Nelson Mandela Bay and its future will be catastrophic.
We are a forward-thinking metro, determined to create opportunity as we grow.
We expect Eskom, or any state entity, to have similar aspirations, serving the people of South Africa rather than itself.
Nelson Mandela Bay rejects the arguments presented by Eskom in its tariff application.
The metro has been intimately involved in the submission made to Nersa by the South African Local Government Association (Salga) and supports this submission fully.
Equally, our metro has confidence in the submission compiled by the Nelson Mandela Bay Business Chamber and fully supports its submission for a substantially lower tariff increase.
Nelson Mandela Bay cannot foresee any increase to its residents that exceeds 8%.
To achieve this, the Eskom tariff increase must be contained to 5% or below.
We reiterate that Eskom’s inefficiencies, and the costs of these, will not become a burden that prevents our growth. Not under our watch.
Annette Lovemore, member of the mayoral committee for infrastructure, engineering, electricity and energy, Nelson Mandela Bay