Electricity tariff hike of 10% still out of reach for most in SA, says civic group StandUpSA
Rustenburg – The 10% electricity increase remains out of reach for millions of South Africans, civic movement StandUpSA said Wednesday.
"StandUpSA has noted the electricity tariffs adjustment from 18% to 10%, albeit a step in the right direction we'd like to state on record that the increase remains out of reach of millions of South Africans who are out of work and continue to suffer the repercussions of the stagnant local economy," the pressure group said in a statement posted on its social media platform.
The organisation said it would continue to engage the National Energy Regulator of South Africa (Nersa) and Eskom to ensure that the voices of the people were heard and taken into consideration when it comes to future tariff increments.
"We remain concerned about the 18.65% that will be charged to municipalities on the 01 July, 2023, because we know that these costs will be transferred to the consumer and that will have a knock-on effect on the cost of living, leading to an increase in the prices of food and transport…"
In a statement on Saturday, Eskom said the 18.65% increase is applicable to its directly supplied or non-municipal tariff, which refers to Eskom's standard tariff customers. The municipal increase of 18.49% is effective on July 1.
"The National Energy Regulator of South Africa (NERSA) on 10 March, 2023, approved the Eskom annual tariff increases. Over 12 months of the Eskom financial year, commencing on 01 April, a 18.65% increase is applicable to Eskom directly supplied or non-municipal tariffs; which refers to Eskom’s standard tariff customers. The municipal increase of 18.49% is effective on 1 July 2023.
"A 10% increase will apply to the subsidised Homelight 20A inclining block tariff for Block 1 (>0-350kWh) and Block 2 (>350kWh)," Eskom said.
The electricity supplier said the Nersa methodology allowed for cross-subsidies.
"The affordability subsidy charge exists due to historically lower Homelight 20A tariff increases and is paid by the non-municipal large industrial and urban tariffs.
“The 2023/24 increase to the affordability subsidy for non-municipal large industrial and urban customers is 29.53% due to the growth in the subsidy to Homelight 20A tariff, following only a 10% increase that is 8.65% lower than the average 18.65% non-municipal increase.
"Including the increase to the affordability subsidy charge, the 18.65% increase to the non-municipal key industrial and urban customers grows to 19.09% and is effective on 1 April 2023.
“During April to June 2023, the 2022/23 tariffs will be applicable to municipalities. The 18.49% municipal increase will be effective from 1 July 2023. "
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