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The Democratic Alliance (DA) cohort of municipal mayors in South Africa has taken a firm stance against the impending 40% electricity tariff hike sanctioned by the National Energy Regulator of South Africa (NERSA), which is set to take effect from April 1, 2025. Representing a coalition in local governance, the DA mayors are calling this increase "outrageous" and are actively voicing their opposition.
Just today, the mayors have begun the official process of contestation by submitting written objections along with substantiated arguments to NERSA. They emphasize that the compounded effect of prior double-digit increases has already left many South Africans grappling with harsh choices between basic essentials and electricity. The newest hike threatens to exacerbate food poverty nationwide.
The DA warns of a potential ironic twist: as consumers curtail their power usage in response to soaring prices, the state-owned utility company Eskom could face a decline in revenue, a scenario that would prove disastrous for local governments that depend heavily on income from electricity tariffs to fund public services.
In light of these developments, the DA is advocating for a parliamentary debate of national importance on the setting and escalation of electricity costs. Furthermore, they are considering legal routes to challenge the methodology behind the decision for the 40% tariff increase.
The electricity saga in South Africa presents considerable contradictions. Citizens are informed of excess power production, yet Eskom continues with load reduction, which critics say is barely distinguishable from load shedding. Amidst the confusion, NERSA plans to implement a 36% annual rate hike coupled with an additional 4% charge aimed at covering debt—which essentially acts as a punitive tax for Eskom's revenue shortfall in the previous year.
The DA stands in solidarity with the South African public in this matter. By opposing the significant hike, they underscore their commitment to preventing a scenario where high living costs due to exorbitant electricity prices become the norm for households across the nation. The call to action is for all South Africans to join the movement to thwart this potential crisis, emphasizing the unity and resolve of both the DA's leadership and the citizenry in fighting this increase.