13 January 2023
The Federation of Unions of South Africa (FEDUSA) is enraged by the decision of the National Energy Regulator’s (NERSA) to grant Eskom tariff increases of 18.65% and 12.74% over the next two year.
NERSA’s approval of the electricity tariff increases will spell a devastating reality for the poor and working class as this means prices of basic goods and other necessary items will hike and cost of living will spiral. The increase will see many South Africans struggling to survive.
It is inconsiderate for NERSA to grant the increase whilst there is a myriad of problems at Eskom and South Africans are now subjected to extensive power cuts daily.
We are currently on load shedding stage 6 and this has had a huge negative impact on schools, businesses, hospitals and other sectors. This cannot be the new normal for the country and FEDUSA calls for urgent results driven intervention by the government.
Consumers are buying electricity that they never get to use fully yet the service remains expensive, problematic, and unreliable. In the private sectors the levels of loadshedding are killing all efforts to create and sustain jobs, short time and company closures are common. The increase in tariffs more than three times the current inflation rate will force companies to save money elsewhere and jobs will be lost.
Site the costs of losses for everyday that the power is out. Undue expenditure and inability to recoup losses due to downtime, only points to massive S189 processes being initiated by struggling employers and businesses.
Inability and continued delays in bringing power stations on board after scheduled maintenance, is only frustrating the process. FEDUSA demands action by government with absolute urgency and conviction, failing which, the noble efforts of the Economic Resconstruction and Recovery Plan as well as the Eskom Compact will be rendered worthless, as workers and South African’s face demise.
Just weeks shy of the State of the Nation Address, President Ramaphosa needs to save this nation and provide solutions to end the problems at the power utility and the country’s economic crisis.
FEDUSA therefore calls for the increase not to be implemented and for the decision to be revisited.
For Media enquiries
For interviews please contact:
Ms Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Mr Ashley Benjamin
FEDUSA Deputy General Secretary