I give you the assurance we’ll do everything possible to cushion everyone: Ramokgopa on looming electricity price hike

Electricity and energy minister Kgosientsho Ramokgopa has put his head on the block vowing he will make sure South Africans are protected from the high cost of electricity.

He said he was confident the government would come up with interventions that would shield consumers from the looming electricity tariff increase and Eskom’s revenue recovery plan.

Ramokgopa’s  commitment comes after the National Energy Regulator of South Africa (Nersa) approved Eskom’s application to retrospectively recoup R8bn for the 2021/2022 financial year. Eskom is also alleged to be considering making an application to Nersa for a whopping 46% electricity tariff hike.

There’s concerns consumers would have to dig further in their pockets for both thesetwo applications by Eskom. But Ramokgopa on Thursday vowed in parliament that between now and February, government would come up with solutions to cushion South Africans from the looming costs.

“So I want to say to everyone that is watching and listening, I am confident we’re going to arrive at a dispensation that we’re able to cushion the poor and the South African population,” he said.

Ramokgopa said the public consultation process for Eskom’s methods on recouping the R8bn revenue will happen by December, while those for the tariff increase will be done by February. “I give you the assurance that, as the minister, I will do everything possible, that we're cushioning everyone,” he said.

“Like we say, these increases are untenable, are unaffordable, and the country can least afford this situation. We’ll do everything possible to address this. I’m confident that’s the assurance I’m giving to the South African people.”

Ramokgopa also told South Africans there were several interventions earmarked at improving Eskom’s finances with a keen focus on municipalities who struggle to bill households.

As a result, municipalities owe Eskom billions of rands. “This debt threatens Eskom’s financial stability and must be resolved to ensure a sustainable future. The point was made earlier on by one of the honourable members, Eskom is owed as of July, about R78 billion collectively by municipalities. But what doesn’t get to be accounted for is that municipalities collectively are owed R350 billion,” said Ramokgopa.

“So this talks to the financial viability of municipalities and the need for us to place urgent and concerted efforts to ensure we improve the capacity of municipalities to be able to discharge their constitutional obligation, including but not limited to the ability to bill all households and also to collect and ensure there’s credit control measures that will make it possible for them to collect what is owed to them.”

Ramokgopa said there’d be a keen focus on protecting especially the poor from the high cost of electricity by ensuring the indigents list is effectively implemented. As it stands, the National Treasury makes provision for at least 10 million South Africans to receive free electricity but there are currently only two million that are benefiting.

This, said Ramokgopa, was because municipalities were unable to effectively put this into practice.

“So in this instance, we are not sitting with the money problem; we are sitting with the efficiency and the capability of municipalities to be able to administer that support., That’s why we’re moving to ensure we introduce, at a national level, any intervention that will make it possible for us to that each and every household that qualifies gets to have this free basic electricity.”

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