The Nelson Mandela Bay Business Chamber has expressed it's disappointment by Eskom's request for 19.9% tariff increase next year.
The National Energy Regulator of South Africa announced it's intention to commence with regulatory processes in considering Eskom's revenue application for the 2018/2019 financial year.
In a statement, the chamber's president, Thomas Schaefer, said the 19.9% would be commercially devastating in the current economic and, if implemented, the proposed increase could have disastrous consequences for local business and the economy
"Not only will such an increase be crippling, but in view of the recent disclosures and reports regarding rampant maladministration and governance failures at Eskom, business and commerce is compelled to continue in its endeavours to hold both Eskom and the Regulator accountable for their actions, in the interest of the public," he said.
Schaefer also expressed his concern with the news that Eskom will possibly also seek to recoup additional revenue up to R60 bn.
"Given the severe impact on members and the public if Eskom is allowed to recover the proposed tariff increases within next year's electricity tariff hike, the Nelson Mandela Bay Business Chamber believes it has no option but to continue lobbying on behalf of our members on this crucial issue," he said.
The business chamber is calling on all businesses, locally and nationally, to make their voices heard by submitting written comment before the set deadline on the 13th of October.
Schaefer also reassured their members that chamber would also be making robust submissions, as well as attend the public hearings in the Eastern Cape and elsewhere in the country if required.
The chamber has also called on it's members to show support by to attending the hearing on the 1st of November which will be held in Port Elizabeth.
The 19.9% increase is expected to translate to a 27.5 % municipal tariff adjustment on the 1st of July next year.
