NERSA hearings: DA’s protest smacks of opportunism and hypocrisy

18 November 2024 

The GOOD Party, has noted the irony and hypocrisy of the DA protesting outside the first NERSA hearing in Cape Town today.

We fully agree that the Revenue Application, by ESKOM, cannot be approved because it will translate into outrageously high and economically dangerous electricity tariff increases to domestic and commercial customers. It is unaffordable and should be resisted.

But the DA calling NERSA’s tariff hike “extortionate” is the definition of the pot calling the kettle black.

In Cape Town, it is the DA-led government that is putting consumers under pressure by charging exorbitant and illegal rates. 

Early next month, the DA will be back in the High Court fighting for the right to implement tariff increases above those authorised by the regulator - as it has done in Cape Town for the past two years.

In the 2022/23 financial year, NERSA approved a 7.4% tariff increase, but Cape Town implemented a 9.6% increase. In the 2023/24 financial year, NERSA approved a 15.1% increase, but the City implemented a 17.6% tariff hike on top of its hiked price from the previous year.

By the GOOD Party’s calculation, Cape Town’s over-charges have forced residents to cough up at least R660m extra over the past two years. 

To add insult to this injury the same electricity consumers are now funding this litigation against NERSA to enable Cape Town to charge us more.

As the Secretary-General of GOOD, I will be making a statement at the NERSA hearings (scheduled for 10am on Tuesday 19th November).

GOOD’s submissions will include:

That the radical tripling in the ESKOM revenue application from a 12.74% increase for 2025, approved in January 2023, to the current application of a 36% increase is unjustifiable; and 

If the Revenue application is approved the increase for Municipal customers, according to ESKOM’s application will be an effective 43.55%.

The impact to the end-user, our economic growth strategy and inflationary targets have to be the key considerations and the financial impact of these increases is patently obvious.

Access to electricity is a basic right. Under the current economic climate, South Africans simply cannot afford such a steep hike.

Issued by Brett Herron, GOOD SG, 18 November 2024