Mayor to present oral submissions at NERSA’s public hearings on Eskom’s proposed 20,5% electricity price hike
16 January 2022
STATEMENT BY CAPE TOWN MAYOR, GEORDIN HILL-LEWISThe City of Cape Town has suggested what we see as a more reasonable alternative — bringing the increase in line with the Consumer Price Index (CPI) of 5,5%. The City has also noted that further increases are planned in future, including an increase of 15,07% in 2023/4 and of 10% in 2024/5.
Capetonians simply cannot afford these increases. They are unfair, unaffordable and unjust.
Like the majority of South Africans, many Capetonians are struggling to make ends meet. The pandemic and national lockdown led to the closure of hundreds of businesses in our city and the loss of thousands of jobs. Despite Cape Town having one of the lowest unemployment rates in the country, our residents are faltering under the burden of the rising costs of energy, fuel, food, and basic consumer goods.
The price of electricity has risen by 307% over the past 13 years, far exceeding inflation. On another method of calculation, over a 15-year period, the average price charged by Eskom for electricity has increased from 19.80c/kWh (in 2007) to 127.63c/kWh (in 2021). This is an increase of 544%.
Last week, the City made written submissions to NERSA, providing detailed analysis of the issue and reasoning for our opposition to the increases. These submissions will be made publicly available tomorrow, after the public hearings.
A petition — which allows Capetonians to add their voices to the call to NERSA to reject Eskom’s application — has been started by the City. Capetonians can sign the petition here: https://www.research.net/r/EskomPetition
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Published by:
City of Cape Town, Media Office