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Outa opposes Eskom’s 15% tariff increase request

Earlier this year, Nersa granted Eskom a 4.1% increase effective from April under the regulatory clearing account to claw back more than R30 billion over the next four years.

FILE: Power lines leaving Eskom's Duvha power station, 15km east of Witbank. Picture: AFP

JOHANNESBURG - The Organisation Undoing Tax Abuse (Outa) has opposed Eskom’s price application, calling instead for an overhaul at the utility.

Eskom has asked the National Energy Regulator of South Africa (Nersa) for a 15% tariff increase per year for the next three years.

Earlier this year, Nersa granted Eskom a 4.1% increase effective from April under the regulatory clearing account to claw back more than R30 billion over the next four years.

Outa’s Ronald Chauke says Eskom cannot fix systemic problems by hiking tariffs.

“The utility is unable to meet electricity demand during weekends of low demand and is back to load shedding.

“Political meddling at Eskom has basically rendered it a hopeless strategic asset that holds the whole country to ransom.

“This is unacceptable and immediate action is required to start unbundling this grossly inefficient entity. Eskom’s leadership must be held accountable to keep the lights on and resolve these chronic operational and performance failures without delay.”

Meanwhile, Eskom says stage two load shedding remains in place until 10pm on Monday due to a constrained power system.

Spokesperson Khulu Phasiwe said: “We still have a number of our units which are offline for technical reasons. We also have our water and diesel facilities which are operating at reduced capacity. So, all of these things are putting pressure on our grid.”

(Edited by Thapelo Lekabe)

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