/ 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 United Democratic Movement (UDM) has taken note of reports indicating that the National Energy Regulator of South Africa (Nersa) has approved Eskom's application to retrospectively recoup R8 billion for the 2021/2022 financial year. Furthermore, it is alleged that Eskom is considering submitting an application to Nersa for a substantial 46% increase in electricity tariffs.

These developments raise serious concerns regarding the potential impact on South African consumers and the broader economy.

Electricity and Energy Minister Kgosientsho Ramokgopa has since vowed that, between now and February, the government will introduce solutions to shield South Africans from the looming electricity price hike.

The UDM firmly believes that the mismanagement of Eskom should not be passed on to consumers, who should not bear the R8 billion cost resulting from that mismanagement. A proposed 46% electricity tariff hike would place an unbearable burden on consumers, already grappling with the rising cost of living. This significant increase would further strain households and businesses, making it difficult for many to cope with the growing financial pressures. The UDM stands against forcing South Africans to shoulder the consequences of poor governance at Eskom.

The UDM questions how Minister Ramokgopa plans to “cushion” consumers from the impending electricity tariff hike, given the dire state of the country's finances. With no money available in the fiscus and South Africa facing severe financial challenges, it is unclear where the resources for such relief will come from. The UDM is keen to understand the minister's strategy and looks forward to hearing his proposals for addressing this crisis without further burdening taxpayers or consumers.

From the UDM's perspective, the solution to Eskom’s ongoing crisis lies in a public-private partnership model for Eskom. Under this model, government should allow up to 30% of electricity supply from the private sector. This approach could introduce much-needed efficiency and accountability from the private sector, while still safeguarding public interests. The UDM believes that this model offers a sustainable path forward for Eskom, ensuring reliable electricity supply without continually passing the financial burden onto consumers.

Furthermore, the UDM advocates for a greater emphasis on renewable energy resources as a key component of South Africa's energy mix. This includes nuclear, hydro, solar, and wind energy generation. Economically feasible technologies and applications must be encouraged and, where necessary, incentivised to ensure widespread implementation of these cleaner energy solutions.

Additionally, there must be investment in training local expertise to harness our raw materials effectively, allowing for local beneficiation. This approach would help foster the growth of local industries, enabling South Africa to produce its own energy products, such as wind turbines, solar panels, and batteries. Not only would this reduce reliance on imports, but it would also create much-needed employment opportunities, driving economic development while addressing the country’s energy needs.

Issued by Nqabayomzi Kwankwa, UDM Deputy President and Leader in Parliament