18% electricity price increase ‘devastating for the unemployed and those dealing with wage stagnation’

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South Africans are calling for President Cyril Ramaphosa to intervene and address the increase in power prices. File photo. Image: GCIS

‘This will be a devastating blow to workers and businesses’, says Cosatu

South Africans are calling for President Cyril Ramaphosa to intervene and address the increase in power prices. File photo.
Image: GCIS

“Where are we supposed to get the money?” is the question cash-strapped South Africans are asking as a 18.65% electricity tariff increase it set to be implemented from April.

On Thursday the National Energy Regulator of South Africa (Nersa) announced its approval of an 18.65% electricity tariff increase for Eskom during the 2022/23 financial year. The regulator further announced approval of a 12.74% increase for the 2023/24 financial year.

Cosatu spokesperson Sizwe Pamla said the increase would have a devastating impact on unemployed people and employees dealing with stagnant wages.

“This will be a devastating blow to workers and businesses struggling to survive in an economy that is still reeling from Covid-19 lockdowns and rampant inflation,” Pamla said.

He said the increase would also be a burden for companies struggling to keep afloat in a stagnant economy.

“The continuous above-inflation increases Eskom has received since 2006 are nothing more than legalised robbery of consumers.

“The increases only serve to pickpocket workers of their meagre wages, suffocate businesses and deny the economy the chance to reduce unemployment.”

Pamla said the yearly tariff increases were not solving Eskom’s generation problems as load-shedding continues to worsen.

“Companies, including key Eskom customers such as the mining industry, which accounts for 30% of its customer base, shopping centres and countless other large consumers are going off the grid.

“At this rate Eskom will be left only with those who cannot afford to go off grid,” he said.

DA MP Ghaleb Cachalia described the increase as “daylight robbery”.

“To increase electricity tariffs by 18.65%, despite consumers spending more than 120 days in darkness in 2022, with indefinite stage 6 load-shedding already in 2023, is officially sanctioned daylight robbery against consumers.

He said South Africans were paying electricity bills but were plagued with living in the dark.

TimesLIVE

 

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