Africa-Press – South-Africa. The mayor of Cape Town, Geordin Hill-Lewis, was on Thursday quizzed about why the City implemented a 17.6% electricity tariff hike, which is more than the National Energy Regulator of South Africa’s (Nersa) recommended 15.1% increase.
Responding to questions from the leader of the Cape Muslim Congress, Yagyah Adams, during a council sitting, Hill-Lewis said: “We spend about R1 billion a month on our Eskom bill. Over a year, Eskom makes up more than a third of our entire City budget.
Nersa approved an 18.6% increase for Eskom, meaning that every Eskom customer in the country, including the City, has to pay this increase,” he said.
Hill-Lewis added that, if the City had to absorb a large portion of the increase and not pass it on to residents, it would be bankrupt.
He said:
The City implemented its budget for the 2023/24 financial year on 1 July, with a capital expenditure budget of a record R69.9 billion.
But the budget came with steep municipal rates and tariff increases, sparking outrage among residents and political parties.
News24 previously reported that Nersa had received several complaints regarding the tariffs.
Hill-Lewis said municipalities had been “punished” by Nersa’s approved increase for Eskom.
“Nersa does not take into account the costs municipalities have. It’s an irresponsible financial decision and threatens the City’s financial sustainability,” he said.
GOOD’s Anton Louw said: “Many Capetonians, like their sisters and brothers elsewhere in the country, are suffering the profound indignities of unemployment and extreme poverty. Many South African homes are barely lit, not because of load shedding, but because residents can’t afford to buy any units.”
Meanwhile, the City’s mayoral committee member for energy, Beverley van Reenen, told News24 the City had been in contact with Nersa.
“It is important to note that the City has implemented the council-approved tariffs as per the Municipal Finance Management Act and that the Nersa recommendation of 15.1% does not change the Eskom hike of 18.6%, which materially impacts the input costs for the City,” she said.
For More News And Analysis About South-Africa Follow Africa-Press
