Electricity Minister Kgoshientsho Ramokgopa. Picutre: Henk Kruger/Independent Newspapers
The DA wants Parliament to debate the rising cost of electricity while Build One South Africa (BOSA) wants clarity from Electricity Minister Kgoshientsho Ramokgopa on the electricity tariff review he recently promised.
This comes amid yet another request by power utility Eskom to the National Energy Regulator of South Africa (Nersa) for a 36.15% tariff increase for next year.
It also happens on the heels of statements by Ramokgopa that a review of South Africa’s electricity pricing policy will be launched to address the rising affordability crisis.
The review is expected to be undertaken in consultation with the South African Local Government Association, Eskom, Nersa and other stakeholders.
DA spokesperson for electricity and energy Mike Mileham said his party wrote to National Assembly Speaker Thoko Didiza on Monday requesting that Parliament hold a debate of national importance on the rapidly rising cost of electricity.
“The decision by Nersa to grant Eskom’s application to retrospectively recover R8 billion through its Regulatory Clearing Account for the 2021-2022 financial year, which will translate to a 4% tariff increase in 2025, and Eskom’s application for a further 36,15% tariff increase in 2025, will effectively price many households out of the electricity market and increase energy poverty to levels not seen since the dawn of democracy,” Mileham said.
He said a leaked document showing Eskom’s tariff increase application to Nersa for the next three financial years showed the power utility was seeking above-inflation and double-digit increases that will make electricity unaffordable.
Mileham also said that according to the South Africa Reserve Bank, the average Eskom tariff increased by 450% while inflation increased by 129% between 2007 and 2022.
Mileham welcomed the recent announcement by the Ministry of Energy and Electricity to review the electricity pricing model but said the depth of the electricity price crisis required that the government move with urgency.
Ayanda Allie, BOSA Member of the Provincial Legislature in Gauteng, said BOSA welcomed the review of electricity tariffs to assess the affordability of electricity and find a way to lower the cost as a step in the right direction.
Allie said her party has been advocating for lower prices as well as ensuring indigent customers on municipalities’ indigent registries receive a bouquet of free basic services.
“It is now common cause that there are huge discrepancies between the funds that National Treasury allocates to municipalities for them to cater for the basic needs of the indigent, versus the actual funds that the municipalities spend in this regard.
“This received mention in President Cyril Ramaphosa’s Opening of Parliament Address last month,” she said.
Allie also said shielding the poor and struggling citizens from the ever-increasing cost of living was a moral imperative.
“Government cannot use the struggles of citizens as a political football. It is, therefore, vital that the Minister gives the public clarity on this review, including commencement date, scope and personnel responsible,” she said.
Cape Times
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