JOHANNESBURG – The South African Local Government Agency (Salga) says increasing electricity prices by 20 percent would be disastrous for municipalities and consumers.
Eskom announced on Thursday that it has adopted a plan to rebuild governance and the company’s integrity.
The utility wants the National Energy Regulator (Nersa) to grant a 20 percent electricity tariff increase.
Nersa has to date held public hearings countrywide to give the public an opportunity to have their voice heard on the power utility’s tariff increase request.
Eskom said the regulator’s public hearings have offered it an opportunity to share the merits of its one-year tariff application from April 2018 to March 2019.
The power utility said it is continuing with its intense debt collection strategy to recover unpaid debt from all customers, including Soweto and defaulting municipalities.
“Despite all the governance setbacks, we need to be reminded that this is a revenue application, and decisions made by Nersa are decisions that will impact the sustainability of Eskom and the ability to provide reliable electricity,” Eskom Interim Group Chief Executive Sean Maritz said.
“I have full faith that Nersa will make the right decision for this country. I equally assure you that Eskom will move towards a successful future and free of corruption.”
The Gauteng leg of public hearings that got underway on Thursday will conclude on Monday.
Nersa’s decision on the revenue application is expected on 7 December.