Cape Town - The public should not have to pay the price for Eskom's corruption and poor leadership.
Today the National Energy Regulator (NERSA) starts public hearings on Eskom’s fourth multi-year price determination (MYPD4) of electricity tariffs, for the three years from April 2019 to March 2022. Organisation Undoing Tax Abuse (OUTA) will present the main points of our opposition to the increases, which were outlined in our submission to NERSA in November 2018.
Essentially, Eskom is seeking to hike South Africa’s electricity tariffs by 15% per annum over the next three years. However, this comes on the back of more than 500% increase in tariffs over the past 11 years, which has had a detrimental effect on the cost of business and living in South Africa.
This is largely due to poor leadership, political meddling and corruption which has permeated the largest state-owned entity and caused a rapid rise in operating costs (primary energy and employee expenses) and debt, which rose from R35bn in 2007 to more than R400bn today.
“OUTA cannot accept such high tariff hikes at this stage, despite the fact that Eskom is broke,” says Ronald Chauke, OUTA’s Portfolio Manager on Energy, who is at the NERSA hearing in Cape Town.