Oral submission at NERSA Public Hearing: Eskom’s price hike is unfair and unaffordable
17 January 2022
As Capetonians, our message to Nersa is simple: we simply cannot afford these increases. They are unfair, unaffordable and unjust.
Like the majority of South Africans, many Capetonians are struggling to make ends meet. The pandemic and national lockdown led to the closure of hundreds of businesses in our City and the loss of thousands of jobs. Despite Cape Town having one of the lowest unemployment rates in the country, our residents are faltering under the burden of the rising costs of energy, fuel, food, and basic consumer goods.
I have called on Nersa not to underestimate the harsh economic realities on the ground: our people are struggling to survive amidst increased costs of living, including electricity.
The price of electricity has risen by 307% over the past 13 years, far exceeding inflation. On another method of calculation, over a 15-year period, the average price charged by Eskom for electricity has increased from 19,80c/kWh (in 2007) to 127,63c/kWh (in 2021). This is an increase of 544%. Over and above the 20,5% increase applied for this year, the City has also noted that further increases are planned in future, including an increase of 15,07% in 2023/4 and of 10% in 2024/5.