Durban - The Provincial Executive Committee of the ANC in KwaZulu-Natal says an instruction to municipalities in the province to go to court to challenge the increase granted by the Nersa (National Energy Regulator of South Africa) to Eskom still stands.
On Saturday, the increase came into effect although municipalities are only expected to be affected by the hike on July 1, which marks the beginning of the financial year in municipalities.
KZN ANC spokesperson Mafika Mndebele said the instruction, that was given in January, to their municipalities still stood and municipalities must go to court and challenge the increase.
ANC provincial secretary Bheki Mtolo, in January said the PEC unanimously rejected the tariff hikes that Nersa granted to Eskom for the next two financial years.
An increase of 12.74% was approved for the 2023/24 financial year.
Mtolo said such increases could not be enforced given the negative economic conditions.
He said rising electricity tariffs had heightened the public’s fears and anxiety and there were a number of forecasts showing rising food prices and fuel prices were set to increase next week.
Mafika on Tuesday said President Cyril Ramaphosa had also called on Nersa to review the increase.
“An increase of such a magnitude is unreasonable as we are facing an electricity crisis in the country. They are expecting people to pay more when the service provider has huge challenges.
“We expect ANC-run municipalities in KZN to heed this call,” said Mndebele.
He said the impact of load shedding on small and medium businesses had been devastating and business would not be able to deal with the double-digit increase.
“These businesses struggle to purchase generators and inverters and this new hike will cause more damage.”
Eskom in a statement on Friday said Nersa approved the power utility’s annual tariff increases on March 10.
“Over 12 months of the Eskom financial year, commencing on April 1, a 18.65% increase is applicable to Eskom directly supplied or non-municipal tariffs; which refers to Eskom’s standard tariff customers. The municipal increase of 18.49% (what municipalities will pay to purchase electricity) is effective on July 1.”