CGCSA SAYS ESKOM TARIFF HIKE MUST BE ACCOMPANIED BY PROGRESS TO IMPROVE ELECTRICITY SUPPLY

The Consumer Goods Council of South Africa (CGCSA) has noted the two tariff increases awarded to Eskom by the National Energy Regulator of South Africa (Nersa) effective from April in 2023 and 2024, respectively. These tariff increases, though aimed at improving Eskom’s financial situation, will add more operational costs to companies in the consumer goods sector which are already battling with the financial impact of load shedding.

CGCSA is calling for more operational stability and efficiency at Eskom by ensuring that it accelerates plans to restore generation capacity and improve availability of electricity. The tariff increases should be accompanied by a demonstrated commitment to deal effectively with the problems facing Eskom. In this regard, we expect Eskom to take us into its confidence about a clear and measurable roadmap to improve the reliability of power supply in the country.

The current load shedding has and continues to disrupt business operations of our members, not to talk about the devastating impact on consumers and small businesses. Eskom has escalated load shedding to Stage 6 with no clear indication of when it will lower the frequency of power cuts. This alone creates further uncertainty about the extent of the problems Eskom is facing, and importantly brings into question the reliability of maintenance work being carried out at its generating plants.

The constant breakdowns point to a deeper problem than we have been made to understand and it is important that Eskom be more transparent about the extent of its problems and plans to reduce load shedding. The economy cannot sustain the current frequency of power cuts which are harmful for growth which is needed to create jobs and attract investment.