/ 4 May 2008

Salga opposes proposed electricity hike

The South African Local Government Association (Salga) came out against the proposed increase of 53% in electricity prices during a meeting in Kimberly, the association said on Sunday.

Chairperson Amos Masondo said: ”The proposed hike will have a debilitating effect on not only the planning processes of municipalities but also on the quality of life of our people, particularly the poor.”

He said the increase had the potential of adding to inflationary pressures ”already prevalent in our country”.

A formal position would be submitted to the National Electricity Regulator by May 12, he said.

Salga reiterated its support for the restructuring of the electricity distribution industries.

”This opens a way for the delivery of a reliable, affordable and high quality electricity supply and service,” Masondo said.

Salga also agreed to assist with the improvement of fund governance structures and systems of the municipal councillor pension fund.

This was to ensure the fund remained on a ”sound financial footing” and members’ contributions were secured.

It said its annual national executive committee lekgotla would be held on August 5 to 8, to evaluate the association’s performance and set its priorities. – Sapa