KwaDukuza Municipality mayor Lindile Nhaca
Durban — KwaDukuza Municipality mayor Lindile Nhaca has ridiculed the “unjust” electricity tariff increase.
This comes after the National Energy Regulator of South Africa (Nersa) approved an 18.65% tariff hike to come into effect on April 1.
Nhaca said the hike would not only lead to the oppression of the poor, but also affect the economy and livelihoods against the backdrop of a high unemployment rate, escalating fuel prices, load shedding and the ever-escalating cost of living.
“I wish to reject this ridiculous hike,” she said.
Speaking about her 2022/23 Mid-Year Budget and Performance Assessment Report before the council on Thursday, Nhaca said their collective mission was to improve lives by easing the burden that weighed heavily on the shoulders of the poor.
“I wish to vow to you that my office with the blessings of this council will work to ensure that efforts to dislodge such injustices imposed against our people – do not see the light of day as this is done without the consideration of the downtrodden toiling masses of our people,” Nhaca said.
She further warned councillors to be aware that the issue of load shedding was a result of failures by Eskom to maintain its plants, non-payment by other municipalities and corruption.
“Nersa should not have considered Eskom’s application because their tariffs are inclusive of Eskom’s self-made inefficiencies and inadequacies which are being reconciled at our expense. As KwaDukuza Municipality and consumers continue to pay for accounts to Eskom, we cannot be prejudiced nor short-changed by Eskom’s inefficiencies and incapacities. The 18.65% tariffs are largely attributed to the costs of buying diesel to manage load shedding.
“This means that municipalities will be paying for Eskom’s inefficiencies which are contrary to the ruling of the Pretoria High Court between the challenge between the business chambers in Nelson Mandela Bay Metro and Msunduzi Municipality against Nersa methodology on municipal tariffs. The court ruled in favour of the business chambers,” said Nhaca.
She said Eskom should not be rewarded by Nersa through the tariff increase, however Nersa should offer Eskom customers rebates for the ongoing load shedding to make up for Eskom’s inefficiencies and ease the impact of load shedding that affects ordinary people.
Nhaca urged the council to join her in proposing steps towards protecting the already financially strained households and businesses by acting on the following:
1. That the accounting officer obtains an urgent legal opinion on Nersa tariffs given to Eskom which I believe will address the inefficiencies of Eskom that are not in line with an existing judgment affecting the prescription of municipal tariffs. Based on such opinion, the accounting officer, with such delegated powers, must then act with the recommended legal action.
2. That the study commissioned by the Electrical Business Unit be presented in the next full council could have a direct impact on our budget process for 2023/24. This is critical for ensuring that when Nersa complies with the Nelson Mandela and Msunduzi judgment, we should be ready to implement cost-reflective tariffs.
3. The accounting officer and his team may further investigate how we can use our free basic services to assist poor households during these times of economic difficulties. In the upcoming financial year, we would like to realise an increment of kilowatts offered to indigent households to at least 10kW to loosen the burden of the poor.
4. The municipal manager should ensure that in the next sitting of the council, the administration tables the energy policy for consideration and adoption. The policy will further assist this council during the budget process to ensure that we are ahead in terms of the following:
4.1. Introducing clear measures to regulate and support the installation of alternative energy supply in our area. This includes the possibility of introducing rebates for those who have successfully installed alternative energy like solar and or other alternatives.
4.2. The municipality will have a framework towards starting a process of encouraging the development of independent power producers within the area and also a mechanism to purchase from the private sector or households.
Daily News