DA slams Nersa’s decision to allow Eskom to recoup R6 billion from consumers through electricity tariff increases.
THE DA has rejected the decision taken by the National Energy Regulator of South Africa (Nersa) to allow Eskom to recoup over R6 billion from consumers through electricity tariff increases.
DA shadow minister of public enterprises, Galeb Cachalia, said on Saturday that it was projected that tariffs would increase by 10,95 percent.
“This is above inflation and it will increase the economic pain of consumers who have been hard hit by an underperforming economy and job losses due to Covid-19.”
Cachalia called on South Africans to write directly to Nersa to request the regulator to reconsider its decision to burden them with high electricity tariff costs.
“This will potentially be above the affordability range of most consumers.
“While Eskom and Nersa argue about the correct allocation and implementation, the bottom line is that Eskom’s model is broken – along with much else in terms of operations, maintenance and governance.”
Cachlia believed the utility sought to cover “efficient costs” from the consumer to pay back borrowed money.
“This is no longer possible – crippling debt, an inability to borrow in the market and a continued reliance on bailouts make the taxpayer and consumer the funder of last resort for a utility that is in a death spiral.”