National Assembly:   10th September 2009

Speaker,

The Inkatha Freedom Party is outraged by Eskom's announcement yesterday that consumers should expect high electricity tariff increases over the next three years, to finance Eskom's infrastructure expansion programme, and that the increases would come on top of the massive 31,3% hike already agreed to.

Furthermore, we are extremely concerned about the effect that the high tariff increases will have on poor South Africans. Many poor disadvantaged South Africans only recently received access to electricity and these mooted increases will once again render electrify unaffordable and inaccessible to the poorest of the poor.

The IFP believes that a lack of foresight and planning from the responsible role-players has led to Eskom's inability to meet South Africa's demand for electricity but we are adamant that ordinary South Africans should not have to pay for the parastatel 's gross mismanagement, financial and operating difficulties.

The IFP would prefer any increase to be in line with inflation as anything higher than this, in the current economic climate, will only contribute to the vulnerability of many South Africans.

The IFP calls on government to urgently put plans in place to limit the tariff increases to the poor and to increase the quantum of free basic electricity provided.  Lastly, the IFP calls on government to open up the channels for independent electricity suppliers to become part of the national electricity grid.

I thank you.