Mayor of Cape Town criticizes Eskom tariff hike as “unfair, unaffordable, and unjust

Thursday, January 12th, the National Energy Regulator of South Africa (NERSA) allowed Eskom an 18.65% rise in electricity rates. The mayor of Cape Town, Geordin Hill-Lewis, who opposed the rise for the most of 2022, quickly expressed his displeasure.

Eskom requested a 32% increase in tariffs from the energy regulator for the 2023-2024 fiscal year. NERSA stated that it was had to make a difficult decision and strike a balance between Eskom and consumers.

The 18.65% rise will go into effect on 1 April 2023, and a 12.74 % increase for 2024-2025 has also been approved, since the electricity provider requested a 22.52% increase for that fiscal year in the same application.

“South Africans are being asked to pay in the most unfair, exorbitant, and unjust manner for corruption and inefficiency at Eskom.

“Eskom has alternative ways to raise funds, including reducing their bloated payroll, cutting suppliers who overcharge for substandard coal, and ending corruption, including recovering loot from state capture,” Hill-Lewis stated.

The mayor of Cape Town stated that the metropolitan area is working “flat out” to remove its dependence on electricity from Eskom and is seeking more diversified and affordable power sources to eventually stop load shedding.

He stated, “We remain committed to fighting for ordinary Capetonians, a staggering number of whom are struggling with the rising cost of living.”

During public NERSA hearings, most recently in September 2022, Hill-Lewis presented the City’s opposition to the Eskom tariff rise.

70% of the city’s income from electricity sales is used to purchase bulk power from Eskom, while the remaining 30% is used to maintain a healthy system and electricity infrastructure, according to the city.