The African National Congress (ANC) said any massive increase in the electricity price is currently “untenable”, as well as pledging its support for a larger amount of free electricity for indigent households in the new budget.

Members of Parliament will on Thursday debate a recent decision by the National Energy Regulator of South Africa (Nersa) to grant Eskom’s application to retrospectively recover R8-billion for the 2021/22 financial year.

ANC Parliamentary Caucus Chief Whip Mdumiseni Ntuli said this debate was not one the ANC relished, saying the party understood the gravity of the situation and why it was imperative for the tariff increase to be effected.

Ntuli pointed out that Eskom needed to be reimbursed for the generation, transmission and distribution of electricity, and had accumulated a growing municipal debt which necessitated bailouts from National Treasury.

“Whilst the ANC understands the massive gains made by Eskom in keeping the lights on for 176 consecutive days, and the difficult financial challenges they face, we want to make it clear that any massive increase in the cost of electricity at this stage is untenable,” Ntuli stated.

The ANC believes that as the Electricity and Energy Minister and government develop an “innovative approach” to determine the cost of electricity in the country, urgent interventions to reduce the burden on consumers are needed.

The party noted the strain on citizens, saying it would not relent in the fight to advance the fundamental programme of inclusive growth and employment creation, and the war on poverty and the high cost of living.

“In the debate today, our speakers will focus on one of the issues to be raised by the Minister of Electricity in Parliament this afternoon, vis-à-vis, that treasury has provided funds to supply 50 kWh of electricity [a month] to 10-million indigent households, but only 2-million households are currently benefitting. It is critical that our government and [the South African Local Government Association] deal with this matter,” said Ntuli.

He stated that the focus on the implementation of the country’s Energy Action Plan, targeting Eskom’s plant performance and transmission maintenance and development, was solidified when President Cyril Ramaphosa recently signed into law the Electricity Regulation Amendment Bill.

It seeks to open pathways to greater competition and reduced energy costs and increase investment in new generation capacity to achieve energy security.

It also establishes an independent transmission company as the custodian of the national grid, and imposes severe penalties for damage to and sabotage of infrastructure.

The ANC also commended Eskom, its board, management and all employees who had worked tirelessly to prevent loadshedding.

POLITICAL POINTS

Meanwhile, Ntuli warned political parties to resist the temptation to create panic by spreading “unconfirmed” information about tariff increases.

He said “disingenuous arguments” which sought to conflate the need for, and cost of, this tariff increase with scoring political points were unconscionable, saying the Democratic Alliance (DA) was “hypocritical” in this regard.

“In several areas across the Southern Suburbs and Cape Flats, residents have accused the DA-run City of Cape Town of exorbitant electricity increases following the installation of new power meters. By invoking the ire of residents against the proposed tariff, the DA wilfully ignores that they have already subjected those residents to the DA electricity price increases,” he said.