Many municipalities are paying Eskom accounts - Salga
The National Energy Regulator of South Africa (Nersa) chairperson, Jacob Modise on Thursday announced that South Africans will now pay 9.41% more for electricity in 2019/20.
In 2020 tariffs will hike 8.1% and a further 5.22% in 2021.
The South African Local Government Association (Salga) representatives for municipalities argued against the hikes, but it seems to have fallen on deaf ears.
Salga made submissions at the Nersa hearings, rejecting Eskom’s request for a tariff increase.
Eskom argues that it requires these increases to make up for the revenue shortfall from municipal debts, however, Salga says it will further increase municipal debts.
Head of electricity and energy at Salga, Nhlanhla Ngidi says what consumers will be experiencing is a hike of 9.41% plus a 4.4% increase for diffusion pending from the previous regulatory account applied for by Eskom.
So what we will be experiencing in 2019/20 is actually a 13.8% increase.Nhlanhla Ngidi, Head of electricity and energy - Salga
Yes, these increases are exacerbating the municipal debt issue and even though a lot of municipalities are hard-pressed around their reasonings for people not paying for electricity, they are trying hard to pay.Nhlanhla Ngidi, Head of electricity and energy - Salga
It is not all municipalities that are owing to Eskom. It is a substantial number, but a huge number of municipalities while being hard-pressed are still maintaining the Eskom account.Nhlanhla Ngidi, Head of electricity and energy - Salga
The increases will have a fundamental impact on how municipalities are able to collect the debt from consumers.
Listen below to the full interview:
Provincial health department head Dr Thobile Mbengashe is adamant that these scooters were never meant to be ambulances.Read More
The company that got the R10 million tender's Brian Harmse sheds light on the controversial project.Read More
Clement Manyathela chats with former minister Malusi Gigaba in a new feature called #HangingOutwithClement.Read More
RMB CEO James Formby says if the country doesnt control its debt, it will find itself in an economic quagmire.Read More
All Truck Drivers Foundation Gauteng secretary Mandla Mngomezulu says the union condemn any violence that is brought by protest.Read More
Public Enterprises Department acting director-general Kgathatso Tlhakudi gives insight on how the agreement was reached.Read More
The police and the hospital are investigating the rape incident of a two-year-old while in a COVID-19 isolation area.Read More
Investigative journalist Kyle Cowan says the Zondo commission is taking a very long time and there is a little bit of inquiry fatigue.Read More
Clement Manyathela unpacks what he thinks will happen if former VBS CFO Phillip Truter testifies.Read More
CEO Ishmet Davidson says the pandemic has accelerated the pre-existing and long-term structural decline in print media.Read More
Gauteng Education MEC Panyaza Lesufi shared an update on the impact of the outbreak on his department on Friday.Read More
The rapper urged South Africans to adhere to social distancing guidelines and to wear their masks.Read More
Good Things Guy founder Brent Lindeque says people tend not to focus on the number of COVID-19 recoveries that keeps going up.Read More
Social innovator Mbali N has created a tool designed to help people unlearn prejudiced thinking by unpacking harmful stereotypes.Read More
More generating units have broken down, resulting in the utility battling to meet the high demand for electricity.Read More
Communities are being advised to be extra cautious to help the already overburdened health system.Read More
In a statement, the premier said that he had received his test results on Friday and that he was positive.Read More
Professor Salim Abdool Karim says its likely virus might be airborne, but there isn't enough information on that matter.Read More
Health Minister Zweli Mkhize said on Thursday that South Africa now has 113,061 COVID-19 recoveries. Gauteng has 23,804 recoveries.Read More
Grades R, 6, 7, 11 and 12 have so far returned to the classroom as part of the Basic Education Department's phased reopening.Read More