Tax rich MPs to fund power for low-income earners, Nersa told

Durban’s historic Royal Hotel swelled with residents who had travelled from the various townships and far-flung districts of KwaZulu-Natal to oppose a move by Eskom to increase the electricity tariff by 36%.

The delegation from the National Energy Regulator of South Africa (Nersa) was in KZN on Thursday to solicit public views on Eskom’s application for the hefty double-digit increase.


Nersa is holding public hearings countrywide

Nersa has been criss-crossing various provinces holding public hearings. The energy regulator started the engagements in the North West.

Nersa is expected to have arrived at a decision whether to grant Eskom the increase it needs or reject it, by December 20.

During the meeting, tensions ran high. Some community members were unable to access the venue, which was filled to capacity.

Thapelo Mohapi, the secretary-general of the Abahlali baseMjondolo, explained their stance to Sunday World.  He said that the movement had made submissions for free supply of electricity to the struggling working class and the unemployed.

“People are still struggling from the crippling effects of Covid-19. In the case of KwaZulu-Natal, the deadly floods dealt the impoverished a heavy blow. They have not recovered since. Increasing the electricity tariff will be inhumane. What we are pushing for is free electricity for the poor working class, older people and the unemployed,” Mohapi said.

Residents oppose increase, cite floods, Covid-19 for their struggles

He added that the country’s wealth and the high-income earners, such as members of parliament and senior government officials, should subsidise those in the economic periphery.

Godfrey Masikane, a resident of Sydenham in Durban, said he was forced to take desperate measures. He lamented that the hefty price of electricity had forced him to connect illegally.

“I lost my employment during Covid-19 and I now rely on part-time painting jobs. They hardly come by. I have a family of six. They all rely on me to put food on the table. In some months, it gets worse.

“I ended up connecting illegally. At least I pay a monthly flat rate of R100 for unlimited supply of electricity. [I pay this] to the boys in charge of the illegal connection business. And I’m able to use whatever I get in my piece jobs for groceries and other essentials needed in the house,” Masikane explained.

Phumlile Mtshali, 78, from Umlazi township, said she wanted to add her voice. This despite her frail age, which made it difficult for her to walk normally.

“I stay with my two sons, who are both unemployed, and they have their own children. The only source of income is the social grant. It’s not sufficient to cover everything.

Regulator says increase inevitable

“My married daughter assists where she can, but she also has her own family to look after. We can’t breathe, it’s a struggle. The electricity is just unaffordable as it is. Further increases will drown us,” she said.

Nersa spokesperson Charles Hlebela said they sympathised with the residents. They understood the frustrations and the harsh economic times faced by the people. However, the energy regulator must strike a balance.

“It’s a tough balancing act, because there’s just no way Eskom can survive without increasing its tariffs. But it must be just and reasonable. Considering the socio-economic conditions faced by the majority of citizens,” Hlebela said.

The power utility revealed earlier this month that it’s struggling with municipality debt. It said the debt owed by municipalities posed an existential threat to the sustainability of the state entity.

Electricity Minister Kgosientso Ramokgopa said the municipal debt in the past three months had ballooned by over R12-bilion. It reached close to R100-billion. The country’s key  metros form the top worst offenders in not paying their electricity bills. These include the City of Johannesburg, Mangaung, Tshwane, Nelson Mandela Bay and Ekurhuleni.

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