MOSSEL BAY NEWS - According to a statement by the National Energy Regulator of South Africa (Nersa), the regulator has received Eskom's Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
The application was received on 16 August.
The statement follows widespread concern over a possible tariff increase of more than 40% in Eskom's first book year.
Objection
Mossel Bay mayor, Dirk Kotzé, along with other concerned mayors, has addressed a letter of appeal to Nersa, appealing for it to not approve the tariff increase.
"I hereby formally object to Eskom's application to increase the price of electricity by 40% in the 2024/2025 financial year," the letter reads.
"Spiking electricity increases over recent years, combined with lower economic growth, high inflation rates, and excessive load shedding, have placed the economy under severe financial pressure.
"Following the assault of the Covid-19 pandemic on businesses and communities, those businesses that survived struggle to keep their businesses operational. Already struggling businesses could, because of the proposed tariff increase, decide not to invest further in Mossel Bay Municipality, generate their own electricity, or be forced to close their businesses.
Should businesses be compelled to do so by the proposed tariff increase this will negatively affect economic growth and cause a spike in unemployment.
"Mossel Bay Municipality, along with Midvaal Municipality in Gauteng, has been recognised as the most financially sustainable municipalities in South Africa. This is in large part thanks to the 94% payment rate of our residents. However, this payment rate could decrease due to the proposed tariff increase."
The mayor said a planned increase closer to the inflation rate of 5.5% would be a more viable option, but even this would still burden the end-user who simply cannot afford this increase.
"I strongly encourage you to reconsider your application and withdraw it as soon as possible."
Required procedures
Nersa said the Eskom application will be processed following all required procedures, which include assessment for regulatory compliance.
"If the application is considered compliant, it will be processed in terms of the prescripts of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). In this regard, the application will be published for stakeholder comments and public consultation, which emphasises both transparency and public participation. Stakeholders are encouraged to use this opportunity to submit their views and present relevant facts and evidence to the Energy Regulator.
"The Energy Regulator is obliged by the Electricity Regulation Act, 2006 (Act No. 4 of 2006) to properly consider Eskom’s application in terms of the laws, policies, regulations, rules and methodologies governing the electricity sector. The plan and timelines for processing Eskom’s application will be communicated after the Energy Regulator’s pronouncement on the application’s compliance."
Conference
On Monday, 26 August, the mayor also attended the Inaugural Municipal Just Energy Conference in Gauteng as well.
He said he used the opportunity to have a constructive conversation with South Africa’s Minister of Electricity and Energy, Kgosientso Ramokgopa.
"Despite just over five months of Eskom providing uninterrupted power supply, some municipalities in South Africa are still implementing load reduction, leaving some communities in the dark.
Mossel Bay Municipality has been fortunate to be among the few municipalities in the country that have enjoyed sustainable energy provision in the last five months.
"However, there are still many challenges that need to be worked through and that is why I attended the conference to ensure that the needs of the residents of Mossel Bay Municipality are heard at the highest levels of government."
President Cyril Ramaphosa also addressed the gathering of mayors and municipal managers.
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