MEDIA STATEMENT
Johannesburg, 2 December 2024 – Tomorrow, Tuesday 3 December 2024, Tebogo Khaas, chairperson of Public Interest SA, will present oral submissions at the public hearing on Eskom’s Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27, and 2027/28 financial years. Public Interest SA’s presentation highlights the urgent need for transparency and accountability in Eskom’s revenue recovery strategies to ensure sustainability and fairness in addressing South Africa’s energy crisis.
While Public Interest SA has taken a neutral stance on the percentage increase applied for by Eskom, the organisation remains deeply concerned about the potential impact of any significant tariff hike on South Africa’s already struggling economy. "The affordability of electricity is a critical issue for both households and businesses. Escalating tariffs risk undermining economic recovery and exacerbating inequality," said Khaas.
The submission, scheduled for 14:40, will focus on several key areas:
1. Corruption in Infrastructure Projects
Public Interest SA will address the devastating impact of corruption on Eskom’s infrastructure projects, which has undermined operational capacity and strained financial resources. “The shadow of corruption has not only compromised Eskom’s infrastructure but has also eroded public trust. While Eskom continues to make significant strides in its anti-corruption efforts, we need concrete, measurable action and full disclosure on measures taken to hold those responsible accountable,” Khaas said.
2. Revenue Collection and Arrears
Public Interest SA will emphasise the need for Eskom to enhance its revenue collection capabilities, particularly with bulk energy customers. Of special concern are significant arrears owed by municipalities such as the City of Johannesburg, which has accumulated billions in unpaid electricity bills. Efficient and equitable revenue recovery is critical to Eskom’s financial health and operational sustainability.
3. Transparency in Negotiated Price Agreements (NPAs)
Public Interest SA will call for greater transparency in Eskom’s negotiated price agreements (NPAs) with large energy users, such as the Hillside Aluminium Smelter. While such agreements can play a role in supporting critical industries, there is a pressing need to ensure that they are structured fairly, transparently, and without compromising the broader public interest.
“South Africans deserve to know how decisions are made about NPAs, which often provide significant discounts to large energy users. These agreements must be balanced against the needs of ordinary citizens and local businesses who bear the brunt of rising tariffs,” Khaas added.
As South Africa faces ongoing energy challenges, Public Interest SA urges Eskom and the National Energy Regulator of South Africa (NERSA) to adopt an approach rooted in accountability, efficiency, and equitable revenue recovery. Ensuring a financially sustainable Eskom is crucial for the stability of the nation’s energy supply and the broader economic recovery.
“Eskom’s actions in the years ahead will have profound implications for every South African. Transparency in revenue collection, spending, agreements with large energy users, and anti-corruption efforts must underpin its operations to rebuild public confidence and ensure the utility can effectively meet the country’s energy needs,” concluded Khaas.
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For media inquiries, please contact:
Public Interest SA Communications Office
Email: media@publicinterestsa.org
Tel: +27 10 005 5884 / 084 566 5400