Cape Town mayor rejects Eskom’s request for 'unfair' 20.5% tariff hike

'Totally unaffordable, unfair and will do profound damage to our economy'

13 January 2022 - 15:57 By Helen Nyambura
Cape Town's mayor says Eskom's requested 20.5% increase in tariffs for 2022-23 is unaffordable for residents.
Cape Town's mayor says Eskom's requested 20.5% increase in tariffs for 2022-23 is unaffordable for residents.
Image: Bloomberg

The City of Cape Town is asking Eskom to withdraw its request for a 20.5% increase in tariffs for 2022-23, saying residents can’t afford the hike.

“That is totally unfordable, unfair and will do profound damage to our economy and families here in Cape Town,” mayor Geordin Hill-Lewis said on the DA Twitter account.

Any increase should be capped at or below the inflation rate of 5.5% because Eskom has had huge tariff hikes in recent years and the utility should offer relief instead of raising prices, Hill-Lewis said. 

Cape Town wants to cut reliance on Eskom by securing about 450MW from renewable sources, the city’s executive director of energy and climate change, Kadri Nassiep, said in July.

The proposed tariff hike shows why it’s important to reduce reliance on Eskom, put an end to rolling blackouts in the city and reduce prices over time, Hill-Lewis said on Thursday.

More stories like this are available on bloomberg.com


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