The African National Congress (ANC) has congratulated the National Energy Regulator of South Africa (Nersa) for applying its mind on the multi-year electricity price increase proposal by Eskom.
"Their decision to increase electricity by 24.8 percent beginning April 2010, 25.8 percent in 2011 and 25.9 percent in the following year, is a vast improvement on the original proposal by Eskom for tariff increases of 35 percent over a three-year period," party spokesman Jackson Mthembu said.
The ANC called on municipalities to respect Nersa's guidelines on increases.
"We call upon all municipal distributors, which effected a 34 percent increase in the 2009/10 financial year to adhere to the Nersa guidelines of implementing a municipal guideline increase of 15.33 percent from 1 July of 16.03 percent from 1 July 2011, and 16.16 percent from 1 July 2012."
Mthembu said the party believed this holistic approach was to ensure electricity supply and "we also believe that such a holistic and comprehensive approach should not put the burden of the energy industry recapitalisation solely on the poor consumers".
He said thought should be given to the funding model for Eskom as well as alternative energy options, including green energy.
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