25 February 2010

The IFP would like to place on record its shock and disgust with the news that Nersa has granted Eskom a 25% per year increase over the next three years.

The SA Chamber of Commerce expects 250 000 job losses over this period and it will deter international investors from investing in South Africa. The tariff increases will also deepen our economic crisis as it will translate into an across-the-board hike in the cost of all goods and services.

The poorest of the poor will once again be hardest hit.

The IFP is also disappointed with Nersa's behaviour in awarding these increases. Public hearings were held where role players were almost unanimously opposed to the planned increases. The people of South Africa made their voices heard but it seems that the public hearings were nothing more than a window-dressing exercise at the expense of the taxpayer.

Furthermore, we believe it is now time that Eskom opens up its door to independent power producers. The delivery of power to South Africa's grid by independent power producers is only expected to commence somewhere between 2012-2017. The IFP urges Eskom to speed-up this process.

The IFP has said before that there are other models through which Eskom's capital and infrastructure expansion programme could be funded, which have not been considered. The IFP is therefore adding its voice to those who are calling for these outrageous increases to be set aside.

The people of South Africa cannot afford this massive increase and it is our belief that the man on the street should not be punished for Eskom's greed and gross financial mismanagement.

Contact: Eric Lucas MP, 082 557 2481.

Media enquiries: Liezl van der Merwe, 082 729 2510.