The City of Tshwane (CoT) has rejected what it terms as excessive tariff price hikes that are proposed by Eskom for the 2023/24 financial year.
The City said Eskom has requested an electricity price increase of 32,02% from the National Energy Regular of South Africa (Nersa). If approved, this tariff increase will take effect in April next year.
In a statement, the City said the proposed tariff increase of 32,02% is crippling and will have a detrimental effect on Tshwane residents and the financial sustainability of the City, which is already in a precarious state.
“There is no doubt that an increment of this scale will have a dramatic and negative effect on residents and businesses who are already facing difficulties with the current economic climate,” the statement read.
The City believes that, in line with the National Treasury guidelines, Eskom should be limited to single-digit increases.
While it is acknowledged that Eskom is having financial difficulties and is working towards turning around its business model, the CoT said it cannot shift this responsibility to consumers. Furthermore, the unfortunate reality is that even with this proposed excessive increase, Eskom services are not guaranteed as the country continues to experience high levels of load-shedding that result in prolonged power outages.
It is also worth noting that for years now many stakeholders have been calling on the government to allow municipalities to procure their own electricity, either from independent power producers or from their own generation.
The reality, however, is that even now during a time of rolling blackouts, municipalities are still required to jump through unnecessary red tape in order to procure alternative energy solutions.
“It is now critical that the national government opens up the energy space and creates an enabling environment for independent power producers so that we have a competitive energy market in the country,” the satement read.