Nersa have tough task to decide on Eskoms proposed hike
Salga says with 58% of SA households deemed poor, a 16% increase would be unfavourable.
CAPE TOWN The South African Local Government Association (Salga) says the National Energy Regulator of South Africa (Nersa) will have a tough task deciding on Eskom's application for a further R22.8 billion.
Electricity tariffs are expected to increase by more than 16 percent if the application is granted.
Salga's Nhlanhla Ngidi says with 58 percent of South African households deemed poor, a 16 percent electricity tariff increase would be unfavourable.
Ngidi says of that 58 percent, those who earn an income are averaging a monthly salary of R2,600.
These tariffs are going to double eight percent. We cannot as Salga stomach that, which is why were calling for Nersa to be very vigilant in its prudence on Eskoms application.
ESKOM DEFENDS APPLICATION
The company says it suffered an R11.7 billion loss in the last financial year and needs to recover this money.
Eskom's Khulu Phasiwe says, If we exceed that amount in terms of how much we use to purchase diesel and things like that, were able to recoup that money, which is why were in this situation now.
Phasiwe adds it needs to recoup the money to replenish diesel reserves and has also cited a multi-billion rand loss in revenue.
Public hearings continue in Cape Town today, with the Cape Chamber of Commerce and Industry among the parties to make representations.
The hearings move to Port Elizabeth tomorrow.