President Cyril Ramaphosa has told power utility Eskom to suspend the pending 18.65% tariff increase approved by the National Energy Regular of South Africa (Nersa) until the load shedding issue has been resolved.
Government doesn’t back the tariff increase
Ramaphosa, during his closing address at the ANC Free State provincial conference, said the government felt Eskom should not implement tariff increase.
He has given the Eskom board homework to consider a proposal to suspend the tariff.
But the Ramaphosa did not elaborate except to say this was one of several interventions that the government had come up with as part of relief to the people.
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“I have made a proposal that the 18.65% increase be put in suspension while load shedding is like this. We know the hardships you have, we are considering those hardships,” he said.
Nersa granted Eskom the 18.65% for the 2023 financial year to cover its debt which was estimated at R71. 4 billion in 2022 expected to be in the region of R80 this year.
The state owned electricity supplier initially requested a 32% hike to cover its debt running into billions.
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The increase had caused an huge outcry from consumers who had been hardest hit by load-shedding that currently jumped between stages four to six.
South Africa is buying power
Ramaphosa said the state begun to purchase power from the neighbouring countries and companies that had generated sufficient capacity to contribute to the grid.
He said that some of the government’s intervention efforts had begun to bear fruit.
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