Date: Jan 15, 2019
Civil society organisations have come out strongly against a request from Eskom for a double-digit tariff increase, saying already heavily burden consumers cannot be expected to bail out the utility time and time again.
On Monday, Eskom CEO Phakamani Hadebe told the National Energy Regulator of South Africa (Nersa) that even if it is granted a 15% annual increase for three years, it would still not be enough to get it out of its debt trap.
Debt levels are continuing to soar and now stand at R419 billion.
But the Organisation Undoing Tax Abuse (Outa) and the Southern African Faith Communities Environment Institute (SAFCEI) say it’s no good repeatedly saying yes to Eskom’s price increase demands, only for the company to repeatedly make the same mistakes.
Hadebe says he’s playing open cards with the public that the power utility is in deep financial trouble.
