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Herman Mashaba slams Nersa for ‘rewarding corruption’ with 15.63 percent tariff

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Mashaba released a statement in which he accused Nersa of ‘rewarding corruption’ with the anticipated 15.63 percent tariff hike from Eskom.

In a statement issued on Tuesday, 14 May 2019, Johannesburg mayor Herman Mashaba accused the National Energy Regulator of South Africa (Nersa) of rewarding corruption at Eskom by allowing the 15.643 increase in electricity tariffs.

“The city has noted the disappointing correspondence from Nersa, indicating that municipalities across South Africa will now face a 15.63 percent tariff increase from Eskom following continued tariff negotiations between Eskom and the energy regulator,” said Mashaba.

“This is after Nersa had initially granted Eskom a hike of 9.41%, 8.1% and 5.2% for the next three financial years, below Eskom’s application for a 17.1 % hike for 2019/20, 15.4% for 2020/21 and 15.5% for 2021/22.”

This after the City of Johannesburg, among other stakeholders, had made representation to Nersa emphasising the concerns held by residents and businesses in respect of the earliest proposed tariff increase. Mashaba said Johannesburg would now be forced to adhere to the proposed hike.

“Despite the City Power’s efforts to absorb price increases arising from Nersa’s decision to grant Eskom a tariff hike, this will still result in a 13.07% increase in tariffs for the City of Johannesburg versus the 12.2% which had initially been modelled by the city, based on the initial tariff increase requested by Eskom,” said the mayor.

“The proposed 12.2% increase had been presented to residents as part of our proposed budget within our IDP sessions, contingent on the final outcome of deliberations between Eskom and Nersa.

“For the city, the new increase is a represents a disappointing ruling which will only serve to add to further hardship faced by residents and businesses alike.”

Mashaba expressed that around 45.2 percent of Johannesburg residents lived below the poverty line and the proposed increase would heavily dent their already strained pockets.

“Given the poor state of the national economy and the massive corruption at Eskom itself, the city, on their behalf of our residents, had argued that the proposed tariff increases were simply unacceptable,” Mashaba added.

Abenathi Gqomo

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