Dear Adv. Sithole

I hereby write to you, on behalf of the Kouga Municipality Council, the business sector within the region, and the 130,000 residents living here, to formally and strongly object to Eskom’s proposed 40% electricity tariff increase.

South Africa’s income per capita has been falling for over a decade with unemployment at around 33%, and at an expanded definition, around 41%, the world’s highest. The cost of living has spiralled out of control where 50% of South Africans now live below the poverty
line.

After the recent formation of the Government of Unity (GNU), South Africans are reacting to what they believe is a reason for optimism for our country’s future. For the first time in years, the gloom is lifting. It is, therefore, critical that all government entities, including NERSA, use this momentum to make difficult decisions in the best interest of all South Africans.

Impact on the Business and Agriculture Sector

An increase of this magnitude will have a devastating impact on communities and businesses already desperately fighting to survive in the current challenging economic climate. Kouga Municipality is working hard to create an environment that makes business here easy and attractive to investment. A ridiculous increase as proposed will most certainly render our efforts fruitless as it will significantly inflate their business operating expenses, leading to potential closures and job losses.

Impact on Vulnerable Communities

This increase will also affect the most vulnerable in our communities. One of our key priorities as Kouga Municipality is to reduce inequality and uplift vulnerable communities. Therefore, we allocated nearly 60% of our 2024/2025 budget toward informal settlement upgrades. Thus these residents already have to make difficult decisions between basic necessities, and an increase of this magnitude will push them deeper into poverty.

Ordinary South Africans should not have to face the burden of ESKOMS’s inability to effectively manage their affairs for over two decades. Eskom cannot be saved by an increase in tariffs. Thus, as a caring municipality, we are doing our part to keep inflation down and to protect the incomes of struggling families while still expanding our free services to the poorest residents. We ask that NERSA do the same.

I respectfully request that NERSA consider the broader economic implications and the welfare of the residents and businesses when making a decision on this matter. It is imperative that Eskom finds alternative solutions to improve efficiency and reduce costs without imposing further financial strain on our citizens.

KOUGA EXECUTIVE MAYOR
Cllr. Hattingh Bornman

See also: Paradise Beach Water Tower Restored By Kouga Municipality