Tolling group now takes on power utility

ESKOM’S latest application to hike its rates is based on claiming costs for electricity it has never generated, according to Outa.

The former Opposition to Urban Tolling Alliance‚ rebranded as the Organisation Undoing Tax Abuse‚ is challenging the power utility’s bid to have the National Energy Regulator of SA (Nersa) give it permission to up its consumer rates.

The organisation said yesterday it had contracted energy analyst Ted Bloom to lead its campaign against electricity price increases‚ since Nersa had cancelled some public hearings‚ saying there had been a “lack of interest”.

“Eskom has a claim of R22.8-billion in terms of the Regulatory Clearing Account despite making a profit of R7.1-billion in the 2013-14 financial year, ” Outa said.

“Outa believes this is unjust and that most of the claim should have been averted through more prudent management.”

Despite the official end of the hearings‚ Outa is urging the public to join it in opposing the rate hikes on www. OUTA . co. za “There are glaring concerns that speak to the inefficiencies within Eskom‚” Outa said.

Outa is also contesting the basis on which Eskom is applying for an increased tariff‚ saying that Eskom was claiming electricity costs and revenue from the public for electricity production it projected‚ but did not generate.

“This is akin to a service provider charging somebody for a service it never rendered or claiming from insurance for a loss envisioned‚ but that did not occur,” it said.

Among other charges‚ “Eskom intends to pass a preventable and unfair over-expenditure [estimated at R10-billion] onto consumers”.