Solidarity said Eskom’s increasing debt and its failure to provide adequate power posed the single biggest threat to the South African economy.
“The false choice of either Eskom getting the tariff increase or of it being dependent on even more bailouts is being presented to South Africa on an ongoing basis, but the fact remains that we see both of these harmful concessions being made every year,” Du Buisson said.
He said Eskom was caught up in a vicious cycle of supplying less and less power, thus wanting to charge more for the power that was available.
“This is by no means sustainable though, and the only solution is to add more power to the grid — as soon as possible.”
He said according to research by the SRI last year, consumers already paid a premium of at least 27% on electricity from Eskom simply because of the ailing power utility's devotion to black economic empowerment.
“The premium we pay for BEE means that, for the past few years, Nersa had to grant a higher increase than was necessary time and again.
“It costs Eskom, and therefore also our pockets, between R12bn and R14bn a year and it leaves ordinary South Africans in the dark while a handful of politically connected individuals are lining their pockets.”
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Consider other producers, Solidarity says as it decries Eskom tariff increase
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Trade union Solidarity says the National Energy Regulator of South Africa (Nersa) should pay more attention to applications from private power generators and less attention to Eskom’s applications for more expensive power.
The union made this comment after Nersa granted Eskom a tariff increase of 18.65% for the 2023/24 year.
“The time that Nersa spends every year to consider Eskom’s tariff increase application can be spent much better on policy reviews to allow new entrants to the power grid to supply their services.
“In the end, this is the only way South Africa can emerge from the energy crisis,” said Theuns du Buisson, economics researcher at the Solidarity Research Institute (SRI).
Nersa grants Eskom increases of 18.65% and 12.74% for next two financial years
Solidarity said Eskom’s increasing debt and its failure to provide adequate power posed the single biggest threat to the South African economy.
“The false choice of either Eskom getting the tariff increase or of it being dependent on even more bailouts is being presented to South Africa on an ongoing basis, but the fact remains that we see both of these harmful concessions being made every year,” Du Buisson said.
He said Eskom was caught up in a vicious cycle of supplying less and less power, thus wanting to charge more for the power that was available.
“This is by no means sustainable though, and the only solution is to add more power to the grid — as soon as possible.”
He said according to research by the SRI last year, consumers already paid a premium of at least 27% on electricity from Eskom simply because of the ailing power utility's devotion to black economic empowerment.
“The premium we pay for BEE means that, for the past few years, Nersa had to grant a higher increase than was necessary time and again.
“It costs Eskom, and therefore also our pockets, between R12bn and R14bn a year and it leaves ordinary South Africans in the dark while a handful of politically connected individuals are lining their pockets.”
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Nersa grants Eskom increases of 18.65% and 12.74% for next two financial years
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