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Economies

Eskom’s proposed pricing increases sparks an explosive debate in parliament

Town Press
Last updated: September 20, 2024 8:03 pm
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Town Press
September 20, 2024
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Eskom’s anticipated pricing hike, which is projected to increase by up to 40% in 2025, has sparked fury.

Kevin Mileham of the Democratic Alliance (DA) pointed out that South African taxpayers are basically paying twice for Eskom’s financial challenges.

On Thursday, various political parties assembled in Parliament to discuss Eskom’s proposed pricing increase, following a nationwide protest led by the Democratic Alliance.

In August, Eskom recommended the raise, which included a 36.15% increase, with an extra 4% authorised by the National Energy Regulator of South Africa (NERSA), bringing the total jump to more over 40%.

ActionSA member of parliament, Malebo Kobe, protested the rise during the urgent parliamentary discussion.

Kobe demanded quick changes to reduce the monopoly on the supply of electricity, boost Eskom’s operational effectiveness, and decentralise the energy sector.

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The Economic Freedom Fighters (EFF) expressed their dissatisfaction as well. The EFF MP Nazier Paulsen drew attention to Cape Town’s significantly high costs.

Paulsen claimed the City of Cape Town was taking advantage of the energy crisis to enrich itself at the expense of its residents, accusing the City of implementing unlawful hikes beyond what NERSA had permitted.

The African National Congress (ANC), which also rejected Eskom’s request for a rate increase, joined the opposition.

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The ANC underlined how undesirable the proposed raise was and demanded that Parliament hold a full discussion on the issue.

This action is a result of the DA’s multiple actions against Eskom’s announcement of a raise, which they fiercely opposed.

The Democratic DA launched a petition against this and received over 100,000 signatures.

Earlier this week, DA supporters also took to the streets of all nine provinces.

In a statement made in parliament, DA MP Kevin Mileham expressed opposition to Eskom’s proposed pricing rise.

Mileham underlined that over the last 17 years, South Africa’s electricity rates had increased by over 945 percent, far above inflation.

NERSA has approved Eskom’s recovery of R8 billion through the Regulatory Clearing Account (RCA) in spite of the opposition.

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