Exorbitant electricity tariff increase request a consequence of a moribund Eskom monopoly
19 January 2022
Note to Editors: Please find attached soundbite by Ghaleb Cachalia MP.
Eskom’s exorbitant 20.5% tariff increase request confirms that the entity’s tariff determination model is heavily biased towards rewarding Eskom’s inefficiency and non-performance while punishing consumers via high energy costs.
It is for this reason that the DA calls for a household-centric tariff determination model that factors in consumer price inflation, household income and energy poverty.
The bottom line is that South Africa is unable to afford Eskom’s failed monopoly. Tinkering on the Titanic will not save the day, especially when you are plagued by loss of skilled employees, inefficiencies, corruption, cost adding procurement and cadre deployment. These factors combine to distort the energy market and fuel spiralling energy costs.