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DA Municipal Mayors resolve to oppose 40% electricity tariff hikes

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DA Municipal Mayors resolve to oppose 40% electricity tariff hikes

DA Municipal Mayors resolve to oppose 40% electricity tariff hikes
Photo by Reuters

13th August 2024

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance (DA) caucus of local government Mayors has resolved to jointly oppose the outrageous NERSA-approved 40% electricity tariff increase set to take effect from 1st April 2025.

DA Mayors have begun the process today with written opposition, and founding arguments, being sent to NERSA.

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While double-digit tariff increases over the past few years forced many to choose between putting food on the table or keeping the lights on, this latest unacceptable increase will make food poverty levels in the country much worse.

These unprecedented increases also risk electricity revenue approaching a revenue ceiling where residents being overcharged for electricity will start reducing consumption to a point that Eskom will make less revenue than before the hikes. This would be a devasting outcome for Local Governments which rely on electricity tariff income to provide various services.

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The DA has already called for a debate of national importance in Parliament on the way in which the cost of electricity is being decided and inflated year after year. The DA is also considering possible legal avenues to challenge the way this 40% tariff increase has come about.

South Africans in cities, villages, towns and farms across the country are not alone in their opposition to this increase, and the DA stands 100% with you and will not back down.

South Africans are told that Eskom is producing too much power, but load reduction remains in place. Load reduction is just loadshedding in another guise.

Amid these contradictions and uncertainty, NERSA wants us all to pay a whopping 36% annual increase coupled with a further 4% debt reduction cost. This debt-reduction cost is essentially a punitive tax on residents to recoup what Eskom failed to make in its revenue last year.

The DA will not stand for this, and we will continue to do everything in our power to stop this increase. We call on all South Africans to join us as there is now a real risk that South African households could become trapped in a permanent high cost of living environment due to sky high electricity prices.

 

Issued by Willie Aucamp MP - DA National Spokesperson

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