Langeberg Municipal Executive Mayor, Ald. Schalk van Eeden calls on the National Energy Regulator of South Africa (NERSA) to reject Eskom’s proposal to increase the electricity tariff by 32% from next year.
Mayor van Eeden said that the proposed increase on Eskom’s electricity tariff is substantially above the inflation rate and will be unreasonable to expect from our residents who are already crippling under the rising costs of living. Such a substantial increase will be unaffordable and have a detrimental effect on our local economy and our communities.
The Langeberg Municipality are fully reliant on buying electricity from Eskom and then distribute it to households and businesses.
The price of electricity has risen more than 500% over the past 16 years, far exceeding inflation over the time. Yet, this drastic price increases come at a time where Eskom has become less able to supply our country with electricity. A rise in the ongoing load-shedding recorded over the past year, makes it evident that Eskom has not shown any meaningful progress in addressing their problems, as the security of our electricity supply has grown less reliable.
Economic growth is related to electricity prices and supply. We are already experiencing major losses to our economy each day that we experience load-shedding. This proposed price increase will further add to the negative strain on our economic growth and devastate households living hand-to-mouth.
- Cost of business and factory operations rise
- Cost of products and services rise
- Job losses
- Any rise in Eskom’s electricity tariffs will have an impact on municipal tariffs and finances
- Food and everyday living costs will increase
“We have been looking into acceptable solutions to address the challenge of electricity supply in the Langeberg Municipal area. We are in the process to draft guidelines on the installation of alternative energy sources and will fast track this process even further to present our residents with an alternative means of electricity supply,” says van Eeden
“We urge the presidency to issue a blanket section 34 determination for municipalities, to allow us to buy, generate, distribute, sell and store energy. We would also like to encourage an incentivised investment system that makes rooftop solar installations easier and cheaper for homeowners and businesses. This will go along way to ease the demand placed on both Eskom generation and municipal distribution. We have seen this to be successful in other countries. It is also crucial that Eskom’s tender processes allow more players into the electricity supply industry to help boost supply instead of resorting to increasing the electricity prices.”
ALD SW VAN EEDEN
EXECUTIVE MAYOR – LANGEBRG MUNICIPALITY