The City of Tshwane has rejected Eskom’s proposal for a 20.5% increase in tariffs for 2022/23, saying it will be detrimental to the residents of Tshwane and the city’s finances.
Mayor Randall Williams accused the power utility of disregarding guidelines by the National Treasury that propose a price hike of 8.5%.
“Eskom has instead made a submission to the National Energy Regulator of SA requesting a series of double-digit increases over the next three years. The power utility has requested a 20.5% hike for the 22/23 financial year followed by a 15.07% increase next year and a 10% increase,” Williams said in a statement.
Williams said if the proposed price hike is approved, residents, businesses and the city would fork out 50% more in the next three years.
He said while the city acknowledges efforts by Eskom to turn around its business, it must not shift that responsibility to consumers and business owners.
“The unfortunate reality is that even with these proposed excessive price hikes, Eskom services are not guaranteed as residents and businesses continue to experience regular electricity outages,” said Williams.
The mayor added the implications of price hikes could lead to poor residents exploring illegal means of power connectivity which would lead to significant financial losses.
The City of Cape Town last week also rejected the proposed price hikes with mayor Geordin Hill-Lewis announcing he had written to Eskom CEO Andre de Ruyter to withdraw the application.
Hill-Lewis said the proposed price hike was unfair and unjustifiable. He said increases should be capped at or below the inflation rate of 5.5%.
People also shared their anger about the proposal on social media.