COSATU not happy with Eskom’s double-digit tariff hike

The Congress of South African Trade Unions (COSATU) is disappointed that the National Energy Regulator of South Africa (Nersa) has granted Eskom a tariff hike of 12.7%.  

This is four times the inflation rate and far above any increase workers have received. It will push the costs of goods up and make life much more expensive for workers. It will deepen poverty and act as a stumbling block to economic growth and job creation.

Whilst we appreciate that Eskom’s nonsensical request for a 36% tariff hike was rejected, 12.7% is still more than workers can bear. Eskom needs to address the billions it loses to corruption, wasteful expenditure, cable theft and non-payments and stop dumping the bill on working-class families.

Government needs to act decisively and deal with the R90 billion debt owed to Eskom by municipalities. Ordinary consumers should not be pickpocketed and made to suffer for the sins of criminals, inept politicians and incompetent managers.

COSATU applauds the tremendous progress that has been made in rebuilding Eskom and appreciates the hard work of the utilities’ employees that has resulted in nearly a year without loadshedding. The Federation calls on government to intensify support for the Eskom to reduce its dependency on double-digit electricity 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. Eskom and government must do their work and fix the leakages in Eskom including illegal connections and pilferage. Government must relieve Eskom of its debt commitments to it and allow it to invest in its generation capacity. 

Issued by COSATU

Zanele Sabela (National Spokesperson)

Mobile: 079 287 5788

Email: zaneles@cosatu.org.za