The Congress of South African Trade Unions (COSATU) calls on the National Energy Regulator of South Africa (NERSA) to reject Eskom’s proposed electricity tariff hike of 36.15% for next year.
Eskom’s proposed electricity tariff increase is nine times the current rate of inflation. This is obviously unaffordable and will sink both businesses and citizens further into financial distress, particularly working class and poor communities.
South Africans have been battling the rising cost of living, but the working class and poor specifically have been struggling to provide even the bare minimum for their families. It is hoped that the slight drop in the repo rate last week, will bring down food prices somewhat but affordability remains a concern, as if a family could not afford to put food on the table before last Thursday, they are not likely to do so in the immediate future and the double-digit proposed electricity tariff hike will only add to the burden.
COSATU applauds the tremendous progress in rebuilding Eskom and appreciates the hard work of the utilities’ employees that has resulted in the nearly five months without loadshedding. We are, however, deeply concerned about the proposed tariff hike, given it comes on the back of a 12.5% increase this year. We urge NERSA not to allow this to proceed as it will be devastating for working class and poor communities.
Businesses too can ill-afford such a hefty increase in energy costs, if granted this latest tariff application will cripple economic growth and set the entire country back.
The Federation calls on government to intensify support for the Eskom to reduce its dependency on double-digit electricity tariff hikes, and for load shedding to remain a distant memory.
The nation and especially workers cannot tolerate such a devastating increase. It will spike inflation, provoking the Reserve Bank to further bleed workers with painful repo rate hikes. Eskom has outsourced its financial mismanagement to society for 18 years with these wild double-digit tariff hikes that have seen its tariffs jump by over 600%, far outpacing the miniscule inflationary salary increases workers battle to secure.
Workers have suffered long enough. Nersa must reject this brazen pickpocketing of workers. Eskom and government must do their work and fix the leakages in Eskom e.g. municipalities owing more than R80 billion to the utility. As agreed to, in the Eskom Social Compact, all consumers must be moved to prepaid electricity meters. Government must relieve Eskom of its debt commitments to it and allow it to invest in its own renewable energy generation capacity. More must be done to end pilferage in Eskom.
If these agreed to Eskom Social Compact commitments are not honoured, then Eskom will continue to dump the bill for its management on already highly indebted workers and a battered growthless economy.
That is a suicidal pact the nation cannot afford.
Issued by COSATU
Zanele Sabela COSATU National Spokesperson
Mobile: 079 287 5788 / 077 600 6639
Email: zanele@cosatu.org.za