Eskom should be congratulated with the fact that during the last six months, until September this year, it could report a R12.6 billion profit, despite the fact that less power was sold even through the winter months.
Eskom has apparently provided for a decline in the demand for electricity and that decline indeed turned out to be more than expected. However Eskom planned for an increase in the demand for electricity for the next five years. This was given as a reason for the requested rate increase over the next five years.
It appears that consumers actually responded very well to Eskom‘s request to save on electricity. Moreover, the increases of the last few years are enough reason for any consumer to implement further savings.
It can be assumed that Eskom’s provision for and increase in the demand for electricity for the next five years is not realistic, which means that no further increase in tariffs are necessary.
In the light of its profitability and possibly incorrect assumptions and calculations TAU SA calls on Eskom and Nersa not to implement any tariff increases and to place a moratorium on any increases for the next three years. Currently farmers suffer severely from high input costs and low product prices and relief in the price of electricity will be of great help and will contribute to sustained food security.
