Eskom acknowledged that a 34 percent interim electricity tariff hike was “not a trivial matter” and would have a negative impact on the economy and the poor, its chief executive Jacob Maroga said on Tuesday.
“I think in particular acknowledging that 34 percent is not a trivial matter, we understand its impact on the economy, we understand its impact to the vulnerable members of our society and we take your comments very, very seriously,” he told public hearings held by the National Energy Regulator of SA (Nersa) in Pretoria.
“But as we move into the funding model, we want those issues to be developed so that we can emerge with an integrated solution that takes into account all those issues that have been raised,” he said, emphasising once again that the application was “not about Eskom” but “it’s about what the country needs”.
While acknowledging the impact of the hike, Maroga said the country’s electricity supply was at risk should Eskom not receive the “right” increase.
“… if we do not get the right amount of increase this year, obviously depending on the size [of the increase] it means we have more risk in terms of security of supply,” he told.
“We still have the process to go through to deal with the totality of what we require [funds], as we [are] speaking and making a determination today will not solve the issue; there is still uncertainty about the long-term.”
During the hearings, the parastatal was accused of flouting the Municipal Finances Act by submitting its application late as well as failing to provide sufficient information on why the steep increase was required.
Maroga said a lot of consultation was required before Eskom could make a determination on the cash it needed… and this process has not yet been finalised, hence the application for the interim tariff hike.
“In my view… as much as you need to respect deadlines, with the substantial amount of money we are talking about and the implications for the country… We needed dialogue,” he said.
The parastatal needed to “engage the shareholder”, the state, and also it needed to assess its ability to obtain funds through borrowing and to pay it back. – Sapa
Greenfan’s View
As the protests mount and discussions drag on about the extent of Eskom’s price increase and its impact on the South African public, it is becoming increasingly clear that our days of cheap and abundant energy are quickly coming to an end. The fact is, an electricity price hike is unavoidable and we should stop complaining and start finding solutions to minimise its impact on our pocket. Renewable energy solutions and energy saving devices are going to become sought after products, as awareness grows of the need to conserve electricity.
South Africans are wasteful by nature and we need to change our attitude to conserve the resources that are becoming increasingly scarce.
How much will the price hike affect our daily lives? Should we keep protesting or start thinking of ways to change? Let us know your thoughts…
