Outa rejects electricity tariffs hike
JOBURG - Organisation Uniting against Tax Abuse (Outa) said the electricity tariff increase of 9.4 percent was unacceptable.
This after the National Energy Regulator of South Africa (Nersa) had approved Eskom’s application for a tariff hike. Outa stated that it would request the full written reasons for the Nersa decision to approve the tariff increase, over and above the previous year’s 12.69 percent increase.
Outa, previously known as Opposition to Urban Tolling Alliance believes that it is unjust for the public to be required to foot the bill for the inefficiencies within Eskom, and that this bill should rather be footed by the department of energy, the sole shareholder of Eskom. Outa said the decision would be studied in detail and energy analysts, economists and lawyers would be consulted to determine whether the increase was justifiable and lawful.
The alliance’s director of legal affairs Ivan Herselman said, “We are of the opinion that an inflexible approach whereby Nersa unconditionally grants an average of eight percent or more every year until 2018 is unlawful. The cumulative effect of these price increases will raise the cost of living disproportionately and bring the South African economy to its knees, which is clearly not in the public interest.”
Outa will be embarking on an in-depth study of Eskom’s dealings which the alliance believes have resulted in enormous electricity price increases of more than 700 percent (some estimate 1 000 percent) in the past decade.
The alliance will request – through the Promotion of Access to Information Act – information relating to coal contracts, diesel contracts, property valuations, delays on Medupi and Kusile power stations, power station performances and various other matters relating to procurement.
“The process will be started within the next weeks,” said Herselman. “We will soon make an announcement on how the public can get involved in our quest to find the information, analyse the information and take appropriate action in order to curb the unaffordable rising costs of electricity.”
This action, Outa hopes, will force the government to take the policy, legislative and accountability measures required to stop Eskom’s leaking bucket.
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