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The mayor of the Kouga Municipality in the Eastern Cape, Hattingh Bornman, has written to the National Energy Regulator of South Africa, complaining about Eskom’s proposed 40% tariff hike.
In a letter shared with the media, Bornman said he was writing on behalf of the Council, the business sector, and 130,000 residents in Kouga Municipality “to formally and strongly object” to the proposed, steep tariff hike.
“South Africa’s income per capita has been falling for over a decade with unemployment at around 33%, and at an expanded definition, around 41%, the world’s highest.
“The cost of living has spiralled out of control where 50% of South Africans now live below the poverty line.
“An increase of this magnitude will have a devastating impact on communities and businesses already desperately fighting to survive in the current challenging economic climate,” he said.
Bornman said Kouga Municipality was working hard to create an environment that makes business easy and attractive for investment.
However, he said “a ridiculous increase as proposed” will render their efforts fruitless and could ultimately lead to potential closures and job losses.
“One of our key priorities as Kouga Municipality is to reduce inequality and uplift vulnerable communities. We therefore allocated nearly 60% of our 2024/2025 budget toward informal settlement upgrades.
“These residents already have to make difficult decisions between basic necessities, and an increase of this magnitude will push residents deeper into poverty,” Bornman said.
