By Umamah Bakharia

Eskom might raise its electricity prices by 20%. This was confirmed by Eskoms chief financial officer, Calib Cassim who says that the state owned utility has applied for an electricity increase of its 2023 financial year that is set to take effect from 1 April 2022.

South Africans are complaining as the financial burden continues adding on the increased petrol and food prices. DearSA conducted a survey on South Africans reactions to this possible change.

Radio Islam spoke to Managing Editor at Dear South Africa, Rob Hutchinson on the survey conducted.

Rob Hutchinson, Managing Editor at DearSA

“South Africans are against the suggested increase and there has been considerable financial pressure on all South African sectors and a further 20.5% increase will just break the back of many businesses and individuals in South Africa,” says Hutchinson.

DearSA believes that the tariff increase is unwarranted because the only way to boost the South African economy is to lower the cost of electricity.

“We understand that Eskom has [a] financial [strain] but the public has been covering this through tariff increases,” says Hutchinson. He adds that consumers have to pay the price because it gets passed down the line.

With Eskom in huge financial debt of R392 billion as of September statistics, they could either be bailed out from national treasury or increase tariffs to obtain the money.

Eskom expects this to rise to 416 billion by March 2022 because of funding postponed from the previous year.

Government financial support of 21.9 billion rand and 21 billion rand has been committed for 2023 and 2024, the power utility said.

Separately, Eskom has appealed recent decisions by the environment department rejecting requests for exemptions from pollution standards at some of its coal plants.

NERSA is expected to make a decision soon on Eskom’s tariff increase

National Energy Regulator of South Africa (Nersa) is set to make a decision regarding the tariff increase soon.

“Every submission has to be considered in the final decision making process,” says Hutchinson as he encouraging citizens to voice their opinion on the increase.

Dear South Africa is a legally recognised and constitutionally protected non-profit platform which enables the public to co-shape all government policies, amendments and proposals.