OUTA outraged by Nersa and Eskom

01 March 2016 - 16:50 By TMG Digital

Eskom’s increased tariffs will allow the inefficient power utility to pass on its costs to consumers‚ OUTA said‚ as it announced it would request a written response from Nersa explaining the reasons behind the increase. The Organisation Undoing Tax Abuse‚ formerly the Opposition to Urban Tolling Alliance‚ which has become a consistent critic of Eskom‚ was reacting to the National Energy Regulator’s approval of a tariff hike of 9.4% for customers of Eskom.“OUTA will request the full written reasons for Nersa’s decision to approve a 9.4% tariff increase‚ over and above the previous year’s 12.69% increase‚ for Eskom for the 2016/2017 year. The organisation believes this increase is too lenient towards Eskom and allows the bill for various inefficiencies within Eskom to be passed onto consumers‚” OUTA said in a statement issued soon after Nersa announced its decision.“We are of the opinion that an inflexible approach whereby Nersa unconditionally grants an average of 8% or more every year until 2018 is unlawful. The cumulative effect of these price increases will raise the cost of living disproportionately and bring the South African economy to its knees‚ which is clearly not in the public interest” said Ivan Herselman‚ Director of Legal Affairs at OUTA.OUTA is also set to embark on an “in-depth study of Eskom’s dealings that have resulted in enormous electricity price increases of over 700% (some estimate 1000%) in the last decade including “information relating to coal contracts‚ diesel contracts‚ property valuations‚ delays on Medupi and Kusile power stations‚ power station performances and various other matters relating to procurement”...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.