The civil rights organisation AfriForum will on Friday 11 May 2018 give commentary on Eskom’s latest application for tariff increases at the public hearing of the National Energy Regulator of South Africa (Nersa) in Soweto, Gauteng.
Eskom is looking for R67 billion in funding to compensate for unforeseen expenses and this can lead to a massive 35% increase in electricity prices.
Morné Mostert, Head of Local Government Affairs at AfriForum, says this process is not supposed to be a corruption-funding strategy. “Our presentation to Nersa will be broadly focussed on three aspects: Firstly, on corrupt activities at the electricity supplier; secondly, on Eskom’s operational costs; and thirdly the general management of Eskom will also be discussed.”
Mostert refers to how Eskom between 2007 and this year experienced runaway employment, while electricity sales remained largely the same and the economy grew at a snails’ pace in the last year. Primary energy costs also skyrocketed and corruption, especially in terms of the purchase of coal, definitely played a role. “Nersa only takes into account prudently incurred primary energy expenses when they decide over tariff increases. There is plenty proof that indicates that the increase in primary energy costs over the past decade was extremely unjustified.”
In addition to this, AfriForum also has in their sights on Nersa’s plans to register, regulate and tax electricity generators and solar panels. “We will most definitely comment thereon and oppose it,” says Mostert.
AfriForum asks that you please add your voice to a petition to oppose this tariff increase. Click here: https://afriforum.co.za/electricity-tariff-increase/.