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You are here: Home / News / Eskom’s R8 Billion “Make Up” Tariff

Eskom’s R8 Billion “Make Up” Tariff

22 November 2024 by Guest

Dear Editor

Yesterday, in the National Council of Provinces (NCOP), a DA-sponsored debate tackled the decision by the National Energy Regulator of South Africa (NERSA) to approve Eskom’s application for retrospective electricity tariff increases. The Democratic Alliance (DA) through its speakers Dennis Ryder, Nico Pienaar and Igor Scheurkogel took a strong stance against this move, warning of the devastating impact on South Africans already battling the soaring cost of living.

The DA expressed its deep concern over the nearly 40% rise in electricity costs over the past two years, which places a disproportionate burden on the country’s most vulnerable citizens. Families are now forced to choose between keeping their lights on and meeting basic needs such as food and education.

The DA highlighted the root causes of the crisis: Eskom’s inefficiency, corruption, and mismanagement. For years, the power utility has operated without proper accountability, squandering resources and failing to deliver reliable electricity to the nation. Despite these failures, South Africans are now expected to foot the bill for Eskom’s past mistakes.

The DA has called for urgent measures to shield the poor and vulnerable from the impact of the tariff hikes. It proposed subsidies for low-income households, energy-efficiency incentives, and ensuring alternative energy sources are accessible and affordable.

The DA also calls on all South Africans to speak out against Eskom’s tariff hike request for next year by attending NERSA’s public hearings which are currently underway across South Africa.

Below are extracts from our speakers:

Dennis Ryder: “The National Energy Regular Act clearly states that Members of the Energy Regulator must: act in a justifiable and transparent manner; and act in the public interest.

Is a 40% increase in electricity prices in the public interest? Absolutely not.

This will reinforce patterns of energy poverty, and make South Africa’s manufacturing industry totally uncompetitive. From load-shedding to job-shedding in one quick move.

The Energy Regulation Act of 2006 says that Eskom must be efficient, to justify its tariff increases. Is Eskom efficient? Absolutely not.

Eskom has expanded its workforce, without adding generation capacity. Eskom cannot collect on its debts. Eskom accepts delivery loads of stone instead of coal. Eskom pays R238,000.00 for a single mop!”

Nico Pienaar: “While people are struggling to find jobs and put food on the table, NERSA is contemplating increasing electricity costs by more than 35% and a further 4% for next year on top of that, forcing people to now choose between putting food on the table and keeping the lights on.

Last year alone Eskom lost R24 Billion including, but not limited to, R6 billion on material losses and R5 billion on irregular expenditure. The shortfall is Eskom, not consumers.

In a show of force, the DA has already submitted 200 000 signatures against the tariff increases and we hope all other political parties will also show their support against these increases publicly.”

Igor Scheurkogel: “South Africans are fed up with the mismanagement of Eskom, the corruption, and the failure to provide reliable, affordable energy.

South Africa must liberalise the energy sector. The DA believes that Eskom’s monopoly must be broken.

Government must allow municipalities and private producers to generate and procure electricity independently. This will create competition, reduce costs, and increase supply stability.

The DA-led City of Cape Town is already leading the way with this approach, and the results speak for themselves: lower energy costs, fewer power outages, and a more sustainable energy future.

Eskom must be professionalised. Government cannot continue to allow corruption and mismanagement to drain the resources needed to keep the lights on.

Transparent governance and accountable leadership (without cadres) are key to delivering reliable energy to South Africans.”

Please sign the DA’s petition to stop NERSA’s power grab!

Regards

Rikus Badenhorst MP
DA NCOP Whip

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