The Johannesburg Multi-Party Government is concerned about the impact that the 18,65% NERSA-approved tariff for Eskom will have on the residents of the City. Residents across the City will regrettably be forced to pay for years of political negligence and corruption.
Eskom originally requested a 38,1% tariff increase during the public consultation process, and as the City we objected based on logical and factual grounds. The objections were necessary, as any increase was going to have a devastating impact on Joburg residents who are already buckling under growing inflation, an ailing economy, high fuel and food prices, and persistent rolling blackouts due to the unreliability of Eskom.
“Notwithstanding the lower increase, the approved 18,65% tariff increase remains unfair to the residents of Johannesburg who have endured rolling blackouts since 2008; with 2022 deemed the worst year to date, with no end in sight”, Executive Mayor, Cllr Mpho Phalatse said.
The MMC for Environment and Infrastructure Services, Cllr Michael Sun said,” Eskom has for the past 6-years consistently received higher than inflation tariff hikes, giving the City little room to protect residents from higher electricity prices. The tariff increase will have far-reaching consequences and will further erode business confidence and disrupt the City's economic recovery, while negatively impacting on job creation efforts and the City’s revenue base.”
We believe that instead of always running to NERSA, begging bowl in hand, Eskom should do more to clean house and seek alternative long- and short-term interventions to improve its operational efficiencies and reduce costs.
Whilst as the Multi-Party Government we fully appreciate that Eskom must be financially viable, residents cannot be the only channel used to rectify what is a politically-made emergency.
“The tariff hike is unaffordable under the circumstances, and will increase City Power's bulk purchases costs to about R200-million a month, which, unfortunately we will be forced to pass- through to the consumer, already reeling from high inflation, job losses, and recovering from the impact Covid-19”, Executive Mayor Phalatse said.
Executive Mayor Phalatse continued, “with 90% of its energy procured from Eskom, the Multi-Party Government and City Power are actively working to reduce Joburg’s dependence on Eskom and has therefore gone out into the market to search for sustainable, reliable and affordable solutions that will eliminate the City’s over-dependence on Eskom. It is worth noting that the 18,65% tariff increase is an average increase for Eskom customers, including municipalities like Joburg.”
Next month, the City of Johannesburg will commence with public consultation processes as part of the 2023/24 budgeting process, and while we want to cushion our customers from high electricity prices, the pressures from Eskom and the tariff they received from NERSA, makes this a challenge.
ENDS.
For media queries, please contact:
Mabine Seabe
Director: Mayoral Communication
Private Office of the Executive Mayor
084 677 7851
15/01/2023
