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Nelson Mandela Bay Metro to oppose proposed Eskom 2018 tariff hike at NERSA hearing

Sep 29, 2017
Nelson Mandela Bay Metro to oppose proposed Eskom 2018 tariff hike at NERSA hearing

The entire Nelson Mandela Bay Municipality Mayoral Committee will be attending a National Energy Regulator (NERSApublic hearing scheduled for the 1st of November, with a goal to have their opposition to proposed Eskom tariff hikes heard.

The public hearing comes after Eskom's proposed to hike electricity tariffs by about 19% in 2018. On top of the proposed 19% increase, it is feared that Eskom will also be seeking to recoup additional revenue in relation to the expired MYPD3 Period (extending from 2013 – 2018) of up to R60-billion.

"Major infrastructure maintenance and overhaul has begun under this coalition government. A R25 Billion maintenance backlog requires the administration's urgent attention, after decades of negligence and poor governance," added Nelson Mandela Bay Municipality Executive Mayor, Athol Trollip.

"As such, Bay residents are already digging deep in terms of rates and tariffs. Every cent of this additional rates income is going to promote infrastructure led growth and accelerate service delivery improvements."

The Mayor said that conversely, Eskom has shown itself to be irresponsible and reckless with public money, thus a tariff increase cannot precede the Utility getting its house in order by ensuring financial prudence and reliable management.

"Cities are the engines of growth and development and could be unnecessarily stifled by unreasonable tariff increases. As such, all Metropolitan Municipalities should reject Eskom's proposed tariff," he said.

"I urge all Bay residents to participate in this public hearing on 1 November 2017, the venue for which will be announced soon."

On the 15th of September, the Nelson Mandela Bay Business Chamber also expressed disappointment to the news of Eskom’s request for a 19.9% tariff increase next year.

It has since vowed to fight the increasesand said it will be making robust submissions, as well as attend the public hearings in the Eastern Cape and elsewhere in the country if required.

"We call on our members to attend the hearing on November 1 in Port Elizabeth, to show their support," said Nelson Mandela Bay Business Chamber President, Thomas Schaefer.