PLETTENBERG BAY NEWS - Bitou Mayor Dave Swart has joined municipalities across the country objecting to the massive electricity price increase proposed by the National Electricity Regulator of South Africa (Nersa).

State-owned power utility Eskom late last year applied for an electricity price increase of 20,5% for its 2023 financial year, set to take effect from 1 April this year.

"The basis for the objection to the proposed increase is that it will be passed on to consumers. Consumers are already under huge strain due to the unfavourable economic conditions and high unemployment rate," Swart said.

He said the impact of Covid-19 has made economic recovery difficult. "Consumers and businesses will not be able to take another hit to their pockets and such an increase will make it even more difficult for everyone."

Comments to Nersa closed on Friday 14 January and the regulator has to adjudicate the tariff application by 25 February this year. 

Eskom's submission to Nersa included a total revenue application of R297-billion for 2023, R335-billion for 2024 and R365-billion for 2025 and stated that it need a sizable tariff increase to address financial sustainability challenges.

Since the news broke, a public participation campaign was launched for South Africans to comment on the proposal. By the deadline more than 50 000 comments were submitted. 

Currently electricity users receive less than 40 units for every R100 spent. Should the increase be approved, this will drop to about 30 units for the same cost.

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