Later today , at 14h00, Parliament will debate a matter of urgent national public importance concerning the recent decision of the National Electricity Regulator ( NERSA) to grant Eskom’s application to retrospectively recover R8 billion for the 2021/2022 financial year.

The ANC Parliamentary Caucus welcomes this debate as it provides an opportunity to discuss one of the three key priorities announced by President Ramaphosa at the opening of Parliament , namely the war on poverty and the high cost of living.

South African consumers face a massive burden due to high costs of living. This impacts on the vast majority of South Africans who are poor , working class and also very directly on the middle class. The cost of electricity impacts negatively on small , medium and large businesses.

As we debate this issue we need to bear in mind the impact which high electricity prices have on the other two apex priorities announced by the President – inclusive economic growth and employment creation and thirdly the building of a capable and development state .

It is critical that we separate the issues here. Firstly there are the implications of the NERSA decision and secondly there is the broader issue of electricity tariffs.

NERSA is the regulatory authority of the energy sector in South Africa and its mandate includes the regulation of the electricity supply industry. and thus, this Energy Regulator must regulate electricity prices and tariffs. In other words, its applicable by law that NERSA determines the tariffs that Eskom charges at a level that allows it to recover revenue for generating electricity.

Eskom needs to be reimbursed for the generation, transmission, and distribution of electricity. It has accumulated a growing municipal debt which necessitated bailouts from the treasury. What this has meant is that electricity prices are determined, and consumers face the burden of paying for this service.

Whilst the ANC applauds the massive gains made by Eskom and our Minister in keeping the lights on for 176 consecutive days, and the difficult financial challenges faced by our Power Utility , we want to make it clear that any massive increase in the cost of electricity is simply untenable. Literally this will be the straw that breaks the camel’s back.

The ANC believes that while our Minister and government develop an innovative approach to determine the cost of electricity in our country, we need urgent interventions to reduce the burden on consumers.

We should also resist the temptation to create panic by spreading unconfirmed information about the extent of tariff increases. Disingenuous arguments which seek to conflate the need and cost of this tariff increase with scoring political points are unconscionable.

The Democratic Alliance is 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 fare increases following the installation of new power meters. It is known that electricity provided directly by Eskom in the City of Cape Town is cheaper than that provided by the City itself.

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 by levying surcharges above the NERSA rate.

The ANC is acutely aware of the strain this has placed our people under, and we will not relent in our fight to reduce the cost of living .

Amongst other issues our speakers will focus on one of the issues to be raised by the Minister of Electricity in Parliament yesterday vis-à-vis, that treasury has provided funds to supply 50khw of electricity to 10 million indigent households, while only 2 million households are currently benefitting. It is critical that our government and SALGA deals with this matter. As the ANC, we will today make clear our support for a process which leads to a bigger amount of free electricity to be provided to indigent households in the new budget.

We must always seek the truth through facts. We must find solutions based on evidence and scientific analysis. In all that we do, the ANC will fight to lower the cost of living for the people of our country – the rural poor, the unemployed, the working class as well as the middle class.

The focus on the implementation of our Energy Action Plan targeting Eskom’s Plant performance and transmission maintenance and development, was solidified when President Ramaphosa recently signed into law the Electricity Regulation Amendment Bill.  The Bill seeks to open pathways to greater competition and reduced energy costs; increase investment in new generation capacity to achieve energy security; establish an independent transmission company as the custodian of the national grid; and impose severe penalties for damage to and sabotage of infrastructure.

The ANC also commends Eskom, its board, management and all its employees who have worked tirelessly to ensure that load shedding remains but a distant memory. Stable electricity supply is imperative for economic growth in our country. We appeal to our people to remain focussed on the bigger picture of growing our economy and we must come together to support the generation recovery plan.