Western Cape residents have expressed frustration over Eskom’s proposed 36% increase in electricity tariffs, warning that it will hurt vulnerable communities and threaten health.
This was voiced during the first National Energy Regulator of South Africa (NERSA) public hearings in Cape Town on Monday.
Community members pointed out that many are already struggling with high unemployment and the challenge of providing basic needs, like food, and that the proposed hike would worsen their situation.
Lucy Davids from Project 90 by 2030 shared her concern about the impact the price increase would have on her one-year-old grandchild, who requires a medical machine.
She explained that they would have to make regular trips to the government hospital, which would add to their financial burden due to higher transport costs and more time spent travelling.
Davids said this would be even harder on her and her husband, who are both surviving on a SASSA pension grant worth R2 190.
Nombulelelo Sijiwe, representing the Women Circle organisation, added that an increase in electricity prices would make it harder for people to access healthcare.
Medicine needs cold storage
She explained that some medication, such as diabetes insulin injections, need to be stored in refrigerators, and that the cost of electricity would make this unaffordable for many families.
“Electricity is not a luxury. This issue causes a lot of stress, which can affect mental health. And if we are forced to rely on candles and paraffin, it can lead to dangerous situations. People can even die from these alternatives,” she said.
Sijiwe narrated the story of a neighbour’s house that was destroyed in a fire caused by a gas accident, highlighting that while gas would become an alternative to the expensive electricity, it was dangerous to use.
Increase necessary to run operations
Calib Cassim, Eskom’s CFO, said it was necessary for Eskom to increase the tariff to maintain operation and infrastructure.
He said Eskom was not only dependent on efficiencies and the number of staff, citing that it is not only sales volumes that should be looked at but other components within the Eskom business, such as infrastructure.
Cassim highlighted that nonpayment by municipalities and metros was impacting negatively on Eskom’s balance sheet, with their debt now at R90 billion.
“There is no business that can survive if you are owed R90 billion and I know it is not in the mandate of the regulator to resolve this but we highlight to the public that this needs to be resolved through government and interventions. Otherwise we find ourselves in an unsustainable position,” said Cassim.
