City of Cape Town Eskom Nersa
By Mpho Moloi
The City of Cape Town is set to challenge Eskom’s proposed 44% electricity tariff increase during public hearings conducted by the National Energy Regulator of South Africa (NERSA) on Monday, November 18, 2024. Leading the city’s delegation, Mayoral Committee Member for Energy, Alderman Xanthea Limberg, will present both oral and written submissions opposing the national power utility’s Multi-Year Price Determination (MYPD) 6 for the 2025/26 to 2027/28 period.
Alderman Limberg expressed strong concerns about the proposed hike, stating, “It is unaffordable, unfair, and disconnected from the financial reality that households, businesses, and our economy face.” She highlighted the significant impact on municipal finances, noting that approximately 75% of the city’s electricity tariff income is allocated to purchasing power from Eskom for distribution.
The proposed increase follows a series of substantial hikes over the past decade, posing a major threat to municipal operations, service delivery, social assistance programs, and the financial well-being of residents and businesses.
Eskom’s application seeks to raise electricity costs by 44% for municipalities and 36% for direct customers in 2025. This request comes after the utility reported a net loss of R26.9 billion for the financial year ending March 2023. NERSA confirmed receipt of Eskom’s six-year revenue application on August 16, 2024, and has initiated the required procedures, including stakeholder commentary and public consultations.
Historical data indicates that between 2007 and 2022, NERSA-approved Eskom tariffs surged by approximately 650%, while general inflation rose by 129%. This disparity has raised concerns about the affordability and sustainability of such increases for consumers.
The Democratic Alliance (DA) has actively opposed the proposed hike, launching a petition that has garnered over 120,000 signatures. Cape Town Mayor Geordin Hill-Lewis emphasized the city’s commitment to diversifying energy sources and providing cleaner, more affordable power. However, he acknowledged that Eskom’s pricing remains a significant factor affecting household costs.
In a related development, Eskom has requested a 36% power tariff increase from April 2025, citing a shortfall resulting from previous regulatory decisions that were not in its favor. The utility has faced financial difficulties for years, often leading to routine power blackouts. However, 2024 has seen a dramatic improvement in plant performance, allowing the country to experience over 200 consecutive days without power cuts, boosting investor confidence and economic growth forecasts.
As the public hearings proceed, stakeholders across South Africa will closely monitor NERSA’s decision, which is expected on December 20, 2024. The outcome will have far-reaching implications for the country’s energy sector, municipal operations, and the economic well-being of its citizens.
Download Here:
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
_______________________
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube
#centralnewsza #freestate