ANC branch seeks lower tariff for SMEs

File photo: Itumeleng English.

File photo: Itumeleng English.

Published Feb 16, 2015

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Johannesburg - The Limpopo ANC wants the National Energy Regulator of South Africa (Nersa) to consider a special tariff regime for small and medium enterprises (SMEs), co-operatives and emerging farmers.

The party discussed this proposal during its two-day provincial executive committee lekgotla in Thohoyandou last week.

“The lekgotla resolved to lobby Nersa for special tariffs for SMEs, co-operatives and farmers and include an education drive about producing or consumption of electricity during off-peak periods,” said ANC provincial secretary Nocks Seabi.

While the energy regulatory body has the prerogative over electricity price determination, the party is hopeful its proposal will be considered.

In October, Nersa granted Eskom permission to increase electricity prices by 12.69 percent, effective from April.

Seabi said high electricity costs hurt small businesses more than large retailers.

“The view of the lekgotla is that (high) tariffs will kill the SMEs, which means they must increase their prices to cover the costs. If costs are up, people will not buy from them, but will go to big businesses,” he added.

The meeting also mandated the provincial government to develop a dedicated programme to support and strengthen co-operatives by sourcing goods and services from them.

“There are few co-operatives that are successful. The Department of Economic Development must come up with an incubator programme and help struggling co-operatives.”

The ANC also wants the provincial government to develop a Limpopo broadband plan and lobby the national government to integrate the railway link between Waterberg and Mpumalanga with the Dilokong rail link and the Moloto corridor. Seabi said this would enhance the efficient and safe movement of goods and people.

The railway link and the broadband plans were first given impetus by former premier Cassel Mathale, but not much has happened so far.

Seabi said the position of ANC provincial treasurer that was left vacant after Thembi Nwedamwutsu died last month would be filled at a planned special provincial general council.

Nwedamwutsu was also education MEC when she died.

The Star

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