NERSA PUBLIC HEARINGS TO BE HELD ON REQUESTED ESKOM TARIFF HIKES

PRESS RELEASE 

FOR IMMEDIATE RELEASE

CAPE TOWN, Western Cape, Wednesday 9 January, 2019

NERSA PUBLIC HEARINGS TO BE HELD ON REQUESTED ESKOM TARIFF HIKES

ESKOM is requesting an additional 15% tariff increase for the next three financial years, amounting to a 45% price hike for consumers.  If a household currently spends R500/month on electricity, the price will increase to R575, R650, and then R725 by the third year.  Electricity tariff hikes will wipe out the SASSA grant annual increases, meaning that more household income will be eroded by electricity expenditure.

The National Energy Regulator of South Africa (NERSA) is mandated to determine the price at which electricity may be supplied by ESKOM consistent with the South African Constitution and in the public interest.  Eskom’s mandate is to “provide electricity in an efficient and sustainable manner.” Thus NERSA have a legislative duty to safeguard the public and ensure that ESKOM is held in check so that South Africans avoid the additional burden of unnecessarily increased electricity prices.  NERSA’s methodology – Multi-Year-Price-Determination (MYPD) – is used to determine how much revenue ESKOM can collect on a three-yearly basis and the objectives include, inter alia, ensuring reasonable tariff stability consistent with the socio-economic objectives of the government.  ESKOM are currently overstating their projections and then claiming the difference from NERSA in the form of tariff hikes! 

It is important to bear in mind that:

• ESKOM is requesting an annual increase (for three years) of 15% on tariffs, which will likely be at least 17% depending on each municipality.
• High electricity tariffs will encourage households that can afford to move off-grid to start generating their own electricity resulting in a loss of revenue for Eskom which will impact cross-subsidisation of energy for poor households. 
• Climate change, the biggest crisis facing society today, has an impact on our environment, health and economy. Our energy choices have a direct impact on Climate Change.
• Coal is becoming more costly, in the economic, social and environmental sense and a Just Energy Transition is required urgently.  
• The application states that ESKOM is projecting a 0.7% increase in revenue over the MYPD period yet there is evidence which suggests that actual electricity demand has decreased in recent years (since 2013). So Eskom should adjust its forecast in line with the current demand for electricity and Eskom should also not be allowed to try and claim this difference back in the future.

There is currently an opportunity to have your concerns heard and considered – NERSA invites the public and all stakeholders to attend the scheduled public hearings on Eskom’s applications – throughout all the provinces.

Public Hearings: Dates and Venues

Project 90 by 2030 will be attending the WC hearings and taking 15 community members from various Cape Flats communities in order to make oral submissions to the panel.

About Project 90 by 2030

Project 90 by 2030 is committed to strengthening civil society cooperation, capacitating local communities and empowering young climate leaders in the pursuit of a just and equitable energy transition.  We aim to inspire and mobilise citizens, business and government to uphold  low carbon actions that are better for people and the planet. For more information, visit https://www.90by2030.org.za

Contact:

Natalie Geyser, Media Relations

natalieg@90by2030.org.za

+27 (0)76 739 0237

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