Letter to Nersa by Executive Mayor Jackie von Brandis

NERSA’S DECISION ON ESKOM’S MYPD5 REVENUE APPLICATION

As Executive Mayor of George Municipality, I am writing to you on behalf of the citizens of George, to object in the strongest possible terms to NERSA granting Eskom an increase in the price of electricity of 44% for the 2024/25 financial year. This price increase is not only unaffordable, but unfair and unjust to our citizens.

Our customers, inclusive of residents, small and medium businesses, cannot afford these price increases that is well above the consumer price index (CPI). The vast majority of South Africans find it difficult to make ends meet and this increase will only further exacerbate this fact.

As the energy regulator, NERSA is responsible for providing the necessary guidelines to Eskom to ensure that it fulfils its mandate, based on this, our residents simply cannot be expected to carry the burden of mismanagement at Eskom through exorbitant tariff increases such as this one.

This proposed tariff increase will result in the majority of South Africans being left in a dire situation if approved as is. Our formal and informal businesses will be forced to close their doors as the cost of fuel and food will rise as a result of the increase in the cost of energy.

Any increase considered should at the very least be in line with the CPI inflation rate target of 5.5%. An increase of 44% is therefore simply cannot be ratified.
In addition, Eskom provides no preference to its good customers who regularly pay their accounts, in terms of price increases or regular supply of electricity.

It is an extreme injustice to expect that ordinary citizens of George (and, indeed, residents of every municipality in the country) should be forced to bear the cost of Eskom and its ongoing woes.
I trust that this letter will receive your urgent attention to reverse the price increase that has been granted.

Yours faithfully
J VON BRANDIS
EXECUTIVE MAYOR
GEORGE MUNICIPALITY