The Congress of South African Trade Unions (Cosatu) on Wednesday said it will “take to the streets” if Eskom is allowed to increase its electricity tariff by 35% a year for the next three years.
The federation’s Western Cape secretary, Tony Ehrenreich, said at a hearing by the National Energy Regulator of South Africa (Nersa) in Cape Town that the proposed tariff increase would close down half the manufacturing sector.
“No increase that exceeds inflation should even be contemplated,” Ehrenreich said. “If need be, we will take to the streets with the affected communities to protest against it.”
Ehrenreich proposed a “solidarity tax” on the wealthy to help Eskom fund its infrastructure expansion programme.
Ehrenreich said the increase would plunge poor people into enormous difficulty. He said there was “obvious extravagance” in wealthy communities.
“We should tax the wealthy so Eskom can fund its programme.”
Eskom acting chairperson Mpho Makwana told the hearing that a 35% increase every year for the next three years was vital for Eskom’s infrastructure programme.
“Eskom can only do what it can with the means that are available to it financially,” he said. “We have to ensure that we don’t overstretch ourselves and compromise the country’s continuity of supply.”
He said Eskom had not been building its financial reserves. Some equity had come in from the government, but it was not enough.
“An appropriate tariff for South Africa to continue to function optimally is 35% a year for three years,” he said.
Mind made up
Meanwhile, Nersa has already made up its mind to grant Eskom the tariff hike it has requested, claimed a joint statement from several organisations on Wednesday.
Cosatu, the South African Communist Party, the South African National Civic Organisation, the Young Communist League and the Treatment Action Campaign alleged that Nersa had “long ago taken a decision on this matter to grant Eskom its 35% increase, and these public hearings are meant to just comply with the law”.
The organisations said they were also of the view that the public hearings were “just a public exercise meant to mislead us that Nersa has taken our views into account”, while in reality a decision had long been taken.
“We also wish to indicate that we are ready to mobilise our members and the community at large in the event that the majority view is not taken into account by Nersa,” the organisations added.
“We will also be mounting a campaign for the removal of the board in the event that the needs of the community are not taken into account.”
Nersa spokesperson Charles Hlebela was not immediately available to comment.
According to Eskom, tariffs have to be raised to help fund its R385 billion expansion plan. — Sapa