The Herald (South Africa)

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

 ??  ?? POWER GENERATOR: Eskom’s Duvha power station outside eMalahleni in Mpumalanga is one of the coal-fired power stations in operation
POWER GENERATOR: Eskom’s Duvha power station outside eMalahleni in Mpumalanga is one of the coal-fired power stations in operation

Newspapers in English

Newspapers from South Africa