Chamber opposes electricity hikes

File image by Keith Galens

File image by Keith Galens

Published Jan 18, 2016

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– The Nelson Mandela Bay Business Chamber in Port Elizabeth said on Monday that it strongly rejected proposed additional increases in electricity tariffs for 2016.

Chamber communication manager, Cindy Preller, said that the chamber was lobbying for members on issues that affected their sustainability.

“In April the increase could be around 16 or 17 percent, if the National Energy Regulator of South Africa (Nersa) approves Eskom’s application – that’s an additional 8 or 9 percent increase over and above the already approved multi-year price determination increase of 8 percent,” said Preller.

Preller said that citizens and businesses in Nelson Mandela Bay could not afford increases beyond the original MYPD3 and once granted, this application would not be in the interest of creating an enabling environment for business to be globally competitive.

“Against the background of crippling drought, national political instability, and the depreciation of the Rand, we propose that tariffs must, in fact, be contained and minimised to accommodate businesses, who find themselves under immense strain, to counter the economic downturn by stimulating growth and employment in the country.”

Representatives from the chamber will on Wednesday present its concerns at Nersa’s public hearing on Eskom’s Regulatory Clearing Account application for the third year multi-year price determination (MYPD3).

African News Agency

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