Eskom tariff increase application will affect the poor the most, DA says

The cost of living for the poor would be unbearable should Eskom’s request for a nearly 50% tariff increase over three years be granted.

This is one of the submissions made by the Democratic Alliance (DA) to the National Energy Regulator of SA (Nersa), which held public hearings in Soweto on Friday regarding Eskom’s application for a 15% tariff increase beginning in the 2019/20 financial year.

The DA and other organisations picketed outside the public hearings. The application by Eskom needs to get Nersa’s approval before it can be applied to customers.

Eskom is in a dire financial situation, with R350bn debt it is unable to service from the revenue it earns.

The DA said apart from the cost of living becoming unbearable for the poor small businesses would suffer as input costs soared through these electricity price increases, putting pressure on their profitability and sustainability.

The DA said this could have a severe impact on businesses’ ability to retain, let alone create jobs.

“It is clear that the failing ANC wants the people of South Africa to pay for their failures at and mismanagement of Eskom.

“The DA maintains that the public should not have to foot the bill for the ineffectiveness and corruption of the failing ANC government,’ DA spokesperson Natasha Mazzone said.

She said what Eskom needed was a complete overhaul.

“The DA has developed an amended Independent System Market Operator Bill (ISMO) which seeks to break Eskom into two separate entities, namely into a generation and transmission entity.”