Eskom Warns of More Tariff Hikes As Utility Struggles to Stay Afloat, Mzansi Fuming

• Eskom board member Mteto Nyathi has warned that more tariff hikes should be expected as the power utility struggles to make money
• He made the comments at a media briefing on the country’s energy crisis, leaving many South Africans outraged
• Nyathi said numerous issues at Eskom, including high debt levels and low tariffs, have affected the power utility’s electricity productivity

JOHANNESBURG - Eskom board member Mteto Nyathi has warned that the struggling power utility is not making money from its current required rates.

He was speaking at a media briefing on the country’s energy crisis when he suggested that more tariff hikes could be expected soon. Nyathi left South Africans stressed, with many saying they are already struggling to make ends meet.

The Eskom board member said that high debt levels, low tariffs and some managers’ poor performance were affecting the utility’s power productivity. According to SABC News, he said Eskom’s debt of R400 billion is preventing it from raising the capital needed to fund its operations.

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Nyathi said people who are not performing at the power utility are failing to take ownership of the problems experienced.

Mzansi fuming as Eskom warns of more tariff hikes

@akaTheSettler said:

“They must continue to do those tariff hikes till no one can afford electricity…. then we all start doing illegal connections. Currently R100 electricity you get 30 units they must continue and see who will buy the electricity.”

@lindsaymanthey commented:

“We can’t take any more Eskom tariff hikes. Do they want a revolution?”

@Jaytea2015 posted:

“Cut salaries of the executives, top management, and the board.”

@morrow_nw wrote:

“Look Eskom is in a death spiral, eventually, most paying middle class and the wealthy will cut themselves free and secure private energy.”

@Jaytea2015 added:

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“Leave debt out of this. The primary function and mandate of Eskom are to produce and distribute electricity. Eskom should not even have the power and ability to talk to IMF or WB. Let alone asking for loans from outside the country.”

Sabotage rife at Eskom

Meanwhile, police have arrested 25 people in connection with sabotage, theft, and fraud at Eskom.

The government previously deployed soldiers at Eskom’s power stations. According to eNCA, work is underway to improve the performance of some stations to reduce stages of loadshedding.

South Africans unconvinced that the ANC's plan to declare Eskom a state of disaster will work

Briefly News also reported that the African National Congress has resolved to take the country's energy crisis seriously.

During an ANC NEC lekgotla on Monday, 30 January, President Cyril Ramaphosa stated that declaring Mzansi's energy crisis a state of disaster is on the cards.

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According to TimesLIVE, the president stated that preparations such as legal requirements are underway for the declaration to be made.

Source: Briefly News