NERSA tariff  increases will impose an unbearable burden on the poor

1 February 2019

The Democratic Alliance (DA) has this morning picketed outside the Nersa Public Hearings in Soweto and handed in a submission opposing Eskom’s request for a nearly 50% tariff increase application over three years.

The cost of living for the poor will be unbearable should this proposed electricity price hike proceed. On top of this, small businesses will suffer as input costs will soar through these electricity price increases, putting pressure on their profitability and sustainability. This could have a severe impact on businesses’ ability to retain let alone create jobs.

It is clear that the failing ANC wants the people of  South Africa to pay for their failures at and mismanagement of Eskom. The DA maintains that the public should not have to foot the bill for the ineffectiveness and corruption of the failing ANC government.

The DA has long had a solution to Eskom’s problems but these have fallen on deaf ears but it appears that the failing ANC is beginning to listen to and take on the DA’s strong policies.

What Eskom needs is a complete overhaul. The DA has led the charge on a way to fix Eskom over the last year instead of applying for massive tariff hikes. The DA has developed an amended Independent System Market Operator Bill (ISMO) which seeks to break Eskom into two separate entities, namely into a generation and transmission entity. The Ramaphosa administration, which is devoid of its own vision has only now started to debate this approach.

Through poor and failing leadership under the ANC-sponsored State Capture project, Eskom has reached a financial precipice and faces a monumental financial crisis. This current application for 15% for three years is nothing more than attempt to shift the responsibility of bailing out Eskom onto consumers and tax payers, who have been subjected to VAT increases, tax increases and now untenable electricity price increases.

Unlike the failing ANC government task team’s recommendations, our offer would see some of the generation entity privatized in an effort to break Eskom’s monopoly, allowing private entities to compete on an equal footing. It will also allow well-functioning metros to apply to enter into agreements with electricity generators directly, giving them scope to choose who supplies them with electricity and reduce the risk of load shedding.

The DA is the only party that gets the job done, and our vision of building One South Africa for All will ensure that the people always come first and aren’t burdened by government failings. A government led by the DA will always apply policies which build the economy and opens opportunities for all.

Issued by Natasha Mazzone, DA Team One SA Spokesperson on State Capture, 1 February 2019