Further job losses, a decimated economy and the alienation of foreign investment will be on the cards for SA should the embattled Eskom be granted a 20% hike in electricity tariffs.
This is according to outspoken energy expert and activist Ted Blom, who is leading the fight against an Eskom bid to spike its charges significantly.
With tariff increases implemented in three-year cycles, a successful Eskom bid would see power prices increase up to 60% over the next three years.
Any dramatic tariff increase is expected to be devastating to both Nelson Mandela Bay’s manufacturing sector – much of which relies on its energy-intensive automotive industry, and its agriculture sector, with the region’s vital citrus industry heavily reliant on critical equipment such as refrigeration.
Blom’s comments come ahead of the National Energy Regulator of South Africa’s (Nersa) public hearings on Eskom’s application which will be held between January 14 and February 4.
An energy adviser to the Energy Expert Coalition, which is one of a number of groups in the country which oppose excessive tariff increases on behalf of private consumers, business and industry, Blom is calling for mass support to challenge the Eskom application.
In Port Elizabeth, the Nersa hearings will be hosted at the Dolphin’s Leap Centre from 9am on January 16.
According to Blom, large industry, such as that found in the Bay’s Special Economic Zone at Coega, will be potentially hard-hit by the proposed increases.
“We jump straight into 2019 with all indications pointing to load-shedding returning by mid January,” he said.
“Despite alleged negligence being the reason for load-shedding, Nersa has announced dates for public hearings on Eskom’s application to increase your electricity tariffs by up to 20%.
“As promised, I will be representing you and 150,235 others, at hearings to be held in all nine provinces,” Blom, who has described the 20% increase as unnecessary, said.
“Cost-effective energy is vital to the economy. A hike of this nature could decimate the economy, create even more job losses and alienate foreign investment. Industries such as mining and smelters – two activities which rely on each other, will be severely affected.
“In Port Elizabeth, big tariff increases would have a very negative impact on manufacturing and on the agricultural industry.”
He said approaches had been made by various agriculture organisations requesting assistance in challenging the proposed hike.
“Many other organisations such as high energy user industry groups and chambers of commerce also support challenging the hike.”
Blom said, however, that there were some positive developments around the country’s energy woes.
“There is a new team at Eskom and we are building a strong relationship with them.
“Eskom owes this country a turnaround plan and there has been acknowledgement that the utility has been managed sub-optimally.
“Approving such a tariff hike would just further legitimise the corruption that has been taking place there, so these things need to be challenged.”
He called on all energy consumers to attend the hearings in large numbers.