Salga raises concern over Eskom's proposed tariff hike

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 The SA Local Government Association says municipalities will bear the brunt of Eskom's proposed tariff hike.

Salga's Subesh Pillay was making a submission to the National Energy Regulator's public hearing in Midrand on Eskom's application for a 16% a year tariff increase for the next 3 years.

Pillay told the hearing that the proposed price hike will drive municipalities to what is known as a municipal tipping point where municipalities will not be able to meet their basic needs.

He said many municipalities were already financially stranded and in debt to Eskom.

A group of people is protesting outside the Gallagher Convention Centre where the hearing is being held.
Meanwhile: Cosatu has promised to step up its campaign against Eskom's proposed price hike.

Cosatu's Dumisani Dakile sounded a dire warning to workers if the National Energy Regulator granted Eskom's application.

"We must brace ourselves for a serious campaign against Nersa and Eskom. We know for a fact that when these prices are going to increase, bosses will look at where they can cut costs and workers will be the first to go" Dakile said.

While the National Energy Regulator has raised concerns that Eskom is shifting the start-up capital of Independent Power Producers onto consumers, CEO Brain Dames says this is the best model to phase in the programme

"Eskom alone cannot meet South-Africa's future energy needs,therefore we do believe that we need the introduction of the private sector within the electricity industry. We have been earmarked as a single buyer as far this is concerned the process is run by government so we have a policy, and we have agreed as a country how we are going to deal with our emissions going forward" Dames said.