Mixed reaction to Eskom tariff hike
Politicians showed mixed reactions to a 13,3% tariff hike granted to Eskom on Wednesday, with the ruling party welcoming the decision and the Freedom Front Plus describing it as “bad news”.
The African National Congress (ANC) said the National Energy Regulator of South Africa’s (Nersa) ruling was a “vast improvement” on the 53% hike Eskom had requested.
“The Nersa decision will limit the negative impact of the increase on consumers and the economy, while ensuring that the country will be able to meet its growing energy needs,” ANC spokesperson Jesse Duarte said in a statement.
“The ANC welcomes in particular the regulator’s determination that the additional tariff increase not be applied in respect of poor households,” she added.
Nersa granted Eskom an additional 13,3% average increase on top of the 14,2% already approved in December. But this was well below that 53%, or 60% nominal, increase that Eskom had asked for.
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The Freedom Front Plus rejected Nersa’s decision, saying it would investigate the constitutionality of the increase, which the party believed was in contravention of the Municipality Management Finance Act.
“The decision by Nersa is bad news for South Africa. The increase means that electricity rates rocketed by a total of 27,5% since last year,” said spokesperson Willie Spies.
“News about the increase came only a few days after Reserve Bank Governor, Tito Mboweni, said that an electricity increase of more than 6% could be damaging for the economy and the Reserve Bank’s inflation targets.”
The Democratic Alliance (DA) welcomed the decision but called for an independent inquiry into “management deficiencies” at Eskom.
“It is clear that Eskom, assisted by the government, has been instrumental in the electricity crisis. As has been stated by the DA on several occasions, the energy crisis has been fraught with Eskom mismanagement and government failure,” said DA MP Hendrik Schmidt.
The Inkatha Freedom Party congratulated Nersa “for not granting Eskom’s proposed 53% tariff increase”.
“A massive once-off price increase will have done more harm than good ... This 13,3% increase should not disrupt the South African economy to the extent that a massive once-off increase would have,” said spokesperson Hennie Bekker.—Sapa
