- Cape Town Mayor opposes Eskom’ tariff application
- Hill-Lewis says residents cannot afford a tariff increment
- Seeks stakeholders support in opposing the application
In a letter to the Chief Executive Officer (CEO) Eskom Andre de Ruyter, the Mayor of the City of Cape Town, Geordin Hill-Lewis has rejected the utility’ application to the National Energy Regulator of South Africa (NERSA) requesting a 20.5% review of electricity tariffs for the 2022/2023 financial year. Hill-Lewis warned that the residents of Cape Town could not afford the planned increase.
“Like the majority of South Africans, many Capetonians are struggling to make ends meet. The pandemic and national lockdown led to the closure of hundreds of businesses in our City and the loss of thousands of jobs. Our residents are faltering under the burden of the rising costs of energy, fuel, food, and basic consumer goods.” the letter read.
“The consumer price index (CPI) is currently stated as 5,5%; this would have been a more reasonable tariff increase for Eskom. The price of electricity has risen by 307% over the past 13 years, far exceeding inflation. Despite paying more for power, South Africans have experienced an unreliable electricity supply — 2020 and 2021 were two of the worst load shedding years on record.” Hill-Lewis stated in the letter.
While acknowledging Eskoms’ request for a tariff review, the mayor stated that the utility should consider deploying alternative strategies, including reducing the Eskom payroll, cancelling tenders with some suppliers, managerial restructuring, and debt recovery. Hill-Lewis also stated that the City would petition stakeholders in opposition to Eskom’ application.
“The law requires the National Energy Regulator (Nersa) to table the 2022/23 price determination in Parliament by no later than 15 March. This means there is still time for Eskom to urgently revise its application. The City will petition SALGA members, Nersa, and other stakeholders to oppose Eskom’s application if they fail to revise it,” Hill-Lewis added.
“I hope that Mr De Ruyter will do the right thing and withdraw Eskom’s application for the price hike immediately,” Hill-Lewis said.