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Outa sees electricity tariff hikes as poor govt participation in Eskom

Outa says it understands that Nersa is in a difficult position but a holistic solution between the state, Treasury and Nersa needs to be adopted.

FILE: Eskom's Megawatt Park in Johannesburg. Picture: EWN.

JOHANNESBURG - The Organisation Undoing Tax Abuse (Outa) says the National Energy Regulator of South Africa (Nersa)'s announcement of increased electricity tariffs is a reflection of governments lack of coherent participation in Eskom’s future.

Outa said it understands that Nersa is in a difficult position but a holistic solution between the state, Treasury and Nersa needs to be adopted.

On Thursday, the regulator announced its granted Eskom a 9.4% electricity hike along with an increase of 8.1% for 2020 followed by 5.2% the following year.

The organisation’s Ronald Chauke said these tariff hikes will hit the ordinary South African the hardest: "After the petrol price that happened a few days ago, it's basically unaffordable. Our costs of living are very high and everything is becoming unbearable and it's a burden for us. It will result in people not paying and that will mean Eskom will lose out on more money."

Meanwhile, Eskom has warned the risk of load shedding for Thursday remains high.

(Edited by Mihlali Ntsabo)