The City of Tshwane has expressed disappointment with the electricity tariff hike saying it will be detrimental to “residents and businesses, and the financial sustainability of the City” warning that it will increase the cost of doing business in the city.
The National Energy Regulator of South Africa( Nersa) granted Eskom an 18.65% increase which will be effective from 1 April this year.
“The City has always been opposed to Eskom’s exorbitant price increases simply because our residents cannot afford them, especially now that we have been plunged into darkness with indefinite Stage 6 load-shedding.
“This tariff increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the City, which is already in a precarious state,” said Mayoral spokesperson, Sipho Stuurman.
“For residents, this excessive price hike will lead to a possible escalation in illegal connections as the cost of electricity will become unsustainable for residents with lower
incomes, resulting in revenue losses for the City and Eskom,” said Stuurman adding that Eskom’s tariff hikes must be limited to single digits.
The City said the electricity hike will increase the production cost for businesses in major production, manufacturing and industrial hubs. Stuurman believes that Eskom should be limited to single digit increases. The municipality has warned that the excessive increase will possibly lead to a possible escalation