By 
The Democratic Alliance (DA) in the Free State took a stance against the Eskom proposed electricity tariff hike of 40% during NERSA’s public hearing in the Free State capital city; that will help recover lost revenue in the previous fiscal terms.
The National Energy Regulator of South Africa (NERSA) is currently conducting public hearings across the country, on Monday, 25 November 2024, NERSA conducted a public hearing in Bloemfontein where the DA made its protest against the proposed electricity price hike in.
The opposition party made its submission to reject the 40% hike in tariffs citing the adverse impact the increment will have on poor and middle-income households including businesses.
According Werner Horn, the DA’s Free State Provincial Chairperson, Eskom’s 40% potential increase includes an application to NERSA for a 36.15% tariff increase next year, with an additional 4% make-up tariff already approved by NERSA to recover revenue losses from previous years.
Horn says the electricity price hike will be detrimental to the survival of lower and middle-income households struggling to make ends meet across the Free State. Businesses will also suffer from the cost of higher overheads, which could have a significant impact on an already struggling economy.
“Eskom must clean up its own house and root out the corruption and organised crime that has significantly contributed to the increased costs of operating the entity. Last year, Eskom lost R24 billion, including R5 billion in irregular spending and R6 billion in material losses (including R81 million lost to corruption).
Currently, ANC-run municipalities owe Eskom R90 billion, with very little collection and recovery being reported,” said Werner Horn.
“It is unacceptable that ratepayers, consumers, homes and businesses are now asked to rescue and bail out Eskom from its financial troubles now that the national treasury has drawn a line and refuses to bail out Eskom again.
The DA rejects the proposed electricity price hike, and we urge NERSA to push for accountability within Eskom to find solutions that don’t unfairly burden the public,” he concluded.
