KLCBT against electricity tariff increases

As we always do, KLCBT’s Linda Grimbeek made a presentation at the NERSA hearing held last Friday, on behalf of the Business Community of the Lowveld.

Eskom wants to recover “old shortages” spanning a number of years, by increasing our tariffs with 5% per year, but that is not all… they want a further 15% per year over the next three years as an increase, mainly to fund infrastructure.

KLCBT objected against the recovery of the “old shortages” in principle, as well as the increase of 15% per year, based on 6 principles:

  1. The true purpose of the RCA and MYPD Methodology was to make recoveries in favour of the consumer, not the other way around;
  2. Eskom as a For Profit Company cannot be allowed to act like a Not For Profit Entity;
  3. The Effects of corruption and mismanagement;
  4. Government intervention is required;
  5. The high increase is in contradiction with Eskom’s core strategies;
  6. The effect on business, Eskom and SA…

KLCBT recommended that only the operational cost increases should be allowed, which is estimated at 4,8% per year over the next three years.  In addition, we insisted on government intervention and we called upon Eskom to show by reputation that they are able to manage the entity with prudence, before they turn to consumers again, with more promises of things to be better in future.

The truth remains:  All the reasons quoted for this application, once again is due to poor management and none of them is our fault – Why should we pay?  Eskom’s owner (government) is responsible to fund their mistakes, not their clients.

After all that business had to endure during past years, increased electricity cost, fuel cost, transport cost, VAT increases, load shedding, downgrades, recession, minimum wage increases (especially farming), we are flat broke and left with zero tolerance for any more of this.  We have kept this country going while it was being robbed.  Small business employs the most people, we mostly subsidise wages we can no longer afford, in the hope it will get better.

We, the businesses of SA – We do not deserve this!

Download full presentation:  Presentation to NERSA 25 January 2019 a


After our presentation, the NERSA chairperson requested that our members answer the following questions:

1. How will the 15% per year impact your business?

2. Will you be able to afford the 4,8% increase as KLCBT suggested?

3. Should we be paying for excess electricity generated?

Please send your answers by return e-mail before 12h00 tomorrow.  linda@klcbt.co.za

See article published in The Lowvelder:  Unethical increase condemned – Lowveld media 1 February 2019