Households and businesses are already reeling from the effects of the Covid-19 pandemic, and the tariff increases will be the ‘final nail in the coffin’, say Stellenbosch and Cape Town mayors.
While Eskom’s proposed tariff increase of more than 20% was being deliberated at virtual hearings this week, municipalities, business chambers and community organisations rejected it as unlawful and unjust.
Stellenbosch Local Municipality in the Western Cape is one of them. Like the rest of South Africa, the town suffers from a compromised economy, and divergent household incomes will bear the brunt of the electricity hike.
Stellenbosch Municipality wrote to the National Energy Regulator of South Africa (Nersa) last week, rejecting Eskom’s proposed increases of 20.5%, 15.07% and 10% for the next three years.
The power utility’s latest tariff plug-in will add to the burden of an already crippled economy. Submissions to Nersa regarding the out-of-favour tariff hikes have been heard at virtual hearings since 17 January.
Eskom wants its proposed increase for the 2022/23 financial year to be implemented from 1 April for non-municipal customers, and from 1 July for municipal customers. Nersa must table the determined increase in Parliament by 15 March.
“Our residents simply cannot afford these…
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