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Electricity increases will have severe economic consequences: DA

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By Akani Nkuna

The Democratic Alliance is warning that the 36.15% hikes proposed by Eskom for 2025 will have a disastrous impact on households and businesses, and plunge the country into further poverty.

The party was picketing outside the National Energy Regulator of SA’s (Nersa) offices in Tshwane on Thursday, where DA energy and electricity spokesperson Kevin Mileham expressed great concern over the impact of the hikes.

“[The tariff increase] will devastate households and businesses already burdened by the high cost of living. It will destroy small businesses, force layoffs and push even more families into poverty,” Mileham told protesters.

He accused Eskom of disregarding South Africans who were struggling financially, saying the utility was a “symbol of state capture, corruption and mismanagement”.

“This electricity price hike is nothing less than Eskom’s attempt to shove the costs of its incompetence and corruption onto ordinary citizens,” he added.

Mileham further recommended restructuring the energy sector through diversification.

“We must move to a future where clean and sustainable energy is the norm, not a privilege. This means that breaking free from coal, from corruption and from the monopolistic grip Eskom holds over this country,” said Mileham.

DA caucus leader in Tshwane, Cilliers Brink, said that exorbitant tariff hikes would inevitably drive consumers to seek illegal connections, further straining municipal services and reducing revenue collections.

“We have to care for the consumer. We have to put households in a position where they do not only want to pay, but where they can pay. If we do not do that, we will have more illegal connections. We will have more non-payments. We will have more deterioration of infrastructure,” Brink said.

Brink further outlined that instead of relying on taxes to address financial struggles, Eskom should rather implement internal cost saving measures and effective management.

The DA also accused Nersa of not allowing all South Africans to comment on the electricity hikes.

“Public hearings into Eskom’s tariff increase are starting next week, but millions of voices are being silenced by Nersa. In the Northern Cape, [Nersa] is not holding public hearings thereby silencing the people from that province,” said Mileham.

Acting Nersa executive manager for electricity regulation, Welile Mkhinze, received a petition from the DA with 200,000 signatures.

He briefly addressed protesters, saying that hearings would start in the Western Cape on Monday.

A statement issued by Nersa earlier this week does not contain details on Northern Cape hearings, but does for the other provinces.

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