Eskom's nersa-approved price hike of 18,6% is a bitter pill to swallow

Langeberg Municipal Executive Mayor, Ald. Schalk van Eeden believe the Eskom electricity price hike as approved by the National Energy Regulator of South Africa (NERSA) will have a detrimental effect on our local economy and our communities. Mayor van Eeden said that the approved 18.6% increase on Eskom’s electricity tariff is substantially above the inflation rate and will be unreasonable to expect from our residents who are already suffering under the rising cost of living. The Langeberg Municipality is fully reliant on buying electricity from Eskom and then distribute it to households and businesses. “Langeberg Municipality is planning to lessen reliance on Eskoms increasingly unaffordable and interrupted electricity supply by buying power on the open market .We have started with a 3-year plus plan to become partially independent from Eskom by diversifying our power sources through independent power procurement. Besides bringing more affordable power into our grid we might also be able to provide relief from load- shedding. We have been looking into acceptable solutions to address the challenge of better electricity supply in the Langeberg area. We are finalising our draft public participation process guidelines for the installation of alternative energy sources,“ says Van Eeden. The price of electricity has risen more than 500% over the past 16 years, far exceeding inflation over the time. Yet, drastic price increase come at a time when 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 Negative impact on the agricultural sector Food security is impacted Job losses Any rise in Eskom’s electricity tariffs will have an impact on municipal tariffs and finances Everyday living costs will increase No further economic development can take place if we cannot supply electricity to new developments and thus we cannot alleviate the problem of unemployment. We will continue to oppose Eskom’s unjust price hikes by all means while accelerating Langeberg Municipality’s plan to reduce our reliance on Eskom. Yours faithfully _____________ ALD SW VAN EEDEN EXECUTIVE MAYOR – LANGEBRG MUNICIPALITY