PARLIAMENT DEBATE ON THE PROPOSED ELECTRICITY TARIFF INCREASES
South Africans are a resilient people, and whilst we understand and even empathise with the current cost of living expenses that we are all experiencing, we find ourselves at a crossroads in so far as the recent decision by the National Energy Regulator of South Africa (NERSA) to grant Eskom’s application to retrospectively recover R8 billion for the 2021/2022 financial year.
The debate today to discuss this crucial matter in Parliament is unfortunately not one the ANC relishes, as we understand the gravity of the situation and why it is imperative for this tariff increase to be effected.
NERSA is the regulatory authority of the energy sector in South Africa and its mandate includes the regulation of the electricity supply industry. and thus, this Energy Regulator must regulate electricity prices and tariffs. In other words, its applicable by law that NERSA determines the tariffs that Eskom charges at a level that allows it to recover revenue for generating electricity.
Eskom needs to be reimbursed for the generation, transmission, and distribution of electricity.
It has accumulated a growing municipal debt which necessitated bailouts from the treasury.
What this has meant is that electricity prices are determined, and consumers face the burden of paying for this service. Whilst the ANC understands the massive gains made by Eskom in keeping the lights on for 176 consecutive days, and the difficult financial challenges they face, we want to make it clear that any massive increase in the cost of electricity at this stage is untenable. The ANC believes that as our Minister and government develop an innovative approach to determine the cost of electricity in our country, we need urgent interventions to reduce the burden on consumers.
We should also resist the temptation to create panic by spreading unconfirmed information about tariff increases. Disingenuous arguments which seek to conflate the need and cost of this tariff increase with scoring political points are unconscionable. The Democratic Alliance is hypocritical in this regard. In several areas across the Southern Suburbs and Cape Flats, residents have accused the DA-run City of Cape Town of exorbitant electricity fare increases following the installation of new power meters. By invoking the ire of residents against the proposed tariff, the DA wilfully ignores that they have already subjected those residents to the DA electricity price increases.
The ANC is acutely aware of the strain this has placed our people under, and we will not relent in our fight to advance the fundamental programme of inclusive growth and employment creation, the war on poverty and the high cost of living. In the debate today, our speakers will focus on one of the issues to be raised by the Minister of Electricity in Parliament this afternoon, vis-à-vis, that treasury has provided funds to supply 50khw of electricity to 10 million indigent households, but only 2 million households are currently benefitting. It is critical that our government and SALGA deals with this matter. As the ANC, we will today make clear our support for a process which leads to a bigger amount of free electricity to be provided to indigent households in the new budget.
We must always seek the truth through facts. We must find solutions based on evidence and scientific analysis. In all that we do, the ANC will fight to lower the cost of living for the people of our country - the rural poor, the unemployed, the working class as well as the middle class.
The focus on the implementation of our Energy Action Plan targeting Eskom’s Plant performance and transmission maintenance and development, was solidified when President
Ramaphosa recently signed into law the Electricity Regulation Amendment Bill. The Bill seeks to open pathways to greater competition and reduced energy costs; increase investment in new generation capacity to achieve energy security; establish an independent transmission company as the custodian of the national grid; and impose severe penalties for damage to and sabotage of infrastructure.
The ANC also commends Eskom, its board, management and all its employees who have worked tirelessly to ensure that load shedding remains but a distant memory.
Stable electricity supply is imperative for economic growth in our country. We appeal to our people to remain focussed on the bigger picture of growing our economy and we must come together to support the generation recovery plan.
