THE City of Joburg refuses to accept Eskom’s proposed tariff increase.
On Monday, 24 January, Joburg Mayor Mpho Phalatse lodged an objection against the power utility’s 20,5% tariff increase, which will see Eskom adding to the financial struggles that South Africans are already in.
The power utility is seeking to increase the tariffs in order to meet its operational demands.
Mayor Phalatse said: “At a time when more than 10 million South Africans are excluded from the economy because of the ever-increasing unemployment rate, the multi-party government finds it implausible that Eskom elects to impose an additional burden on residents who are barely staying afloat. As it is, municipalities around the country contend with diminishing revenue because people are out of work and are therefore not able to pay their bills but Eskom aims to heap more misery by demanding an above-inflation tariff increase.”
Phalatse said the city has reviewed Eskom’s submission on tariff charges and wants to strongly express its objection pertaining to the proposed tariff hike of 20,5%.
“The proposed tariff hike, which is far higher than the current inflation rate, would have a devastating impact on the residents of Johannesburg already impacted by the Covid-19 pandemic as well as an economy that is ailing and is said to be on a recovery path.”
Electricity has become unaffordable, with the majority of South Africans breathing through the wound due to the cost of living which has become so high, exacerbated by the pandemic.
Phalatse said: “We have heard the cries of South Africans and we are calling on Eskom to listen to the people. As the multi-party government, we will be convening an Energy Indaba in March where we will invite Independent Power Producers (IPP) and other stakeholders who will work with us to ensure that the city is no longer reliant on Eskom. These IPPs will not only offer stiff competition to Eskom, but they will also ensure that the city is able to supply sustainable and reliable electricity at affordable prices.”
