Cape Town mayor Geordin Hill-Lewis will be making oral submissions on behalf of the City of Cape Town at NERSA’s virtual public hearings on Monday. Here he will reiterate the call to reject Eskom’s application to increase the price of electricity by 20,5% in the 2022/3 financial year.
The City made written submissions to NERSA, providing detailed analysis of the issue and reasoning for their opposition to the increases, and these submissions will be made publicly available after the public hearings.
According to Hill-Lewis, the City has also suggested what they perceive to be a “more reasonable alternative”, bringing the increase in line with the Consumer Price Index (CPI) of 5,5%, and have noted that further increases are planned in future, including an increase of 15,07% in 2023/4 and of 10% in 2024/5.
“Capetonians simply cannot afford these increases. They are unfair, unaffordable and unjust.
“Like the majority of South Africans, many Capetonians are struggling to make ends meet. The pandemic and national lockdown led to the closure of hundreds of businesses in our city and the loss of thousands of jobs. Despite Cape Town having one of the lowest unemployment rates in the country, our residents are faltering under the burden of the rising costs of energy, fuel, food, and basic consumer goods,” he expressed.
The price of electricity has risen by 307% over the past 13 years, and on another method of calculation, over a 15-year period, the average price charged by Eskom for electricity has reportedly increased from 19.80c/kWh (in 2007) to 127.63c/kWh (in 2021). This is an increase of 544%.
The City has also started a petition that allows Capetonians to add their voices to the call to NERSA to reject Eskom’s application.