The City of Cape Town has joined forces with residents and businesses to oppose a proposed 44% tariff hike, which would further burden already struggling households, Cape {town} Etc reports.
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Concerned parties said that the tariff hike, which may take effect as early as April 2025, would be disastrous for consumers at a time when the economy is failing millions of people.
Mayor Geordin Hill-Lewis wrote to the National Energy Regulator of SA (Nersa) to convey the municipality’s disagreement to the hike.
‘This is a mammoth Eskom increase that Nersa must stop in its tracks. It is unthinkable. On behalf of Cape Town households and businesses, especially small businesses, we are calling for the rejection of a 44% electricity tariff hike.’
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‘The economic impact, and also the impact on especially lower-income families, will be immense with the cost of living already so high,’ Hill-Lewis wrote.
He pointed out that although Eskom had not yet officially filed its proposal with Nersa, preliminary discussions had indicated that the company intended to request increases of 44% and 36%, respectively, for electricity sales to municipalities and direct Eskom customers.
Nersa stated that it will evaluate Eskom’s final application in accordance with the procedures set forth by the regulator.
This is in line with Nersa’s announcement earlier this month that it approved Eskom’s request to recover R8 billion through its Regulatory Clearing Account for the 2021–2022 fiscal year, indicating rate increases for customers in 2025.
‘Once the final application has been submitted, Nersa will consider the application, and diligently adhere to Nersa’s regulatory processes. These processes include publishing the application on the Nersa website, conducting a thorough public participation process that involves inviting stakeholder and public comments, and conducting public hearings,’ said Nersa.
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