FORMER leader of the Azanian People's Organisation Itumeleng Mosala has challenged Eskom to be transparent and fair in how it determines its tariff increases.
Mosala, in his capacity as chairman of the energy committee of the American Chamber of Commerce in South Africa, was making a presentation in Midrand where the National Energy Regulator of South Africa (Nersa) was holding public hearings to gather views on Eskom's application for an electricity price increase of 16% every year for the next five years.
Mosala said Eskom must make the details of its contracts with large-scale industrial organisations and its prices public.
He challenged the power utility to reveal what it was charging neighbouring countries for electricity it exports to those countries.
"Eskom reports that it exports 3256kWh of energy to South Africa's neighbouring countries. Prices governing these agreements must be made public, so that price fairness is maintained for consumers both in South Africa and outside its borders."
Mosala said cost recovery, operating costs and primary energy costs were factors that influenced the efficiency of the power utility.
He questioned how Nersa would determine that the costs Eskom incurred were efficient and prudent.
He said maintenance and human resources made up the bulk of Eskom's operational costs.
"The average salary per employee during the first year of increases will be R613000 rising to R821000 in five years. This appears high. Has this been benchmarked," he wanted to know.
He said unreasonable tariff increases would discourage foreign investors from ploughing money into SA.
"South Africa has to attract foreign direct investment and we believe that the increases Eskom has applied for will make this goal harder to achieve."
Outside the convention centre where the hearings are being held, members of Cosatu and civic organisations protested.
Around 100 people, many dressed in red T-shirts, carried placards and blocked the gate to the premises.
Some of the placards read: "Eskom's application equals job losses and inflation" and "Link electricity tariff increases to inflation".
Two men wrapped in plastic, with electric cables around their necks, sprawled on the ground. Above their heads were cardboard tombstones with the words: "RIP Eskom, you are killing us".
Several elderly people were among the protesters. One of the protesters shouted that Eskom was denying them their basic right to electricity.
Besides the proposed electricity hike, the group said they were against nuclear energy. According to one placard this was a "Nuclear Fukushima".
Eskom urged to be fair, transparent
FORMER leader of the Azanian People's Organisation Itumeleng Mosala has challenged Eskom to be transparent and fair in how it determines its tariff increases.
Mosala, in his capacity as chairman of the energy committee of the American Chamber of Commerce in South Africa, was making a presentation in Midrand where the National Energy Regulator of South Africa (Nersa) was holding public hearings to gather views on Eskom's application for an electricity price increase of 16% every year for the next five years.
Mosala said Eskom must make the details of its contracts with large-scale industrial organisations and its prices public.
He challenged the power utility to reveal what it was charging neighbouring countries for electricity it exports to those countries.
"Eskom reports that it exports 3256kWh of energy to South Africa's neighbouring countries. Prices governing these agreements must be made public, so that price fairness is maintained for consumers both in South Africa and outside its borders."
Mosala said cost recovery, operating costs and primary energy costs were factors that influenced the efficiency of the power utility.
He questioned how Nersa would determine that the costs Eskom incurred were efficient and prudent.
He said maintenance and human resources made up the bulk of Eskom's operational costs.
"The average salary per employee during the first year of increases will be R613000 rising to R821000 in five years. This appears high. Has this been benchmarked," he wanted to know.
He said unreasonable tariff increases would discourage foreign investors from ploughing money into SA.
"South Africa has to attract foreign direct investment and we believe that the increases Eskom has applied for will make this goal harder to achieve."
Outside the convention centre where the hearings are being held, members of Cosatu and civic organisations protested.
Around 100 people, many dressed in red T-shirts, carried placards and blocked the gate to the premises.
Some of the placards read: "Eskom's application equals job losses and inflation" and "Link electricity tariff increases to inflation".
Two men wrapped in plastic, with electric cables around their necks, sprawled on the ground. Above their heads were cardboard tombstones with the words: "RIP Eskom, you are killing us".
Several elderly people were among the protesters. One of the protesters shouted that Eskom was denying them their basic right to electricity.
Besides the proposed electricity hike, the group said they were against nuclear energy. According to one placard this was a "Nuclear Fukushima".
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos