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BLSA CEO says Eskom tariff hike high but utility must be fixed

The National Energy Regulator of South Africa (Nersa) on Thursday has approved a tariff hike of 9.41% for this year.

FILE: Business Leadership South Africa CEO Bonang Mohale speaking at the Lead SA Changemakers Conference in Johannesburg. Picture: @lead_sa/Twitter

JOHANNESBURG - Business Leadership South Africa (BLSA) says while the new Eskom tariffs do appear to be high, the power utility has been at the centre of grand scale looting and needs to be fixed.

The National Energy Regulator of South Africa on Thursday has approved a tariff hike of 9.41% for this year.

This will be followed by an 8.1% hike for 2020 and a 5.2% hike for the year thereafter.

BLSA CEO Bonang Mohale said the power utility had been severely damaged and those responsible still need to pay.

"Today there’s not a single South African who does not recognise that Eskom is currently a crime scene."

At the same time, the South African Local Government Association’s head of electricity and energy, Nhlanhla Ngidi, said the latest increase would exacerbate the debt issue for municipalities.

"A lot of municipalities are already hard pressed with their revenue and people paying for their electricity are trying, it is not all municipalities that are owing Eskom."

(Edited by Thapelo Lekabe)

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