DA urges consumers to have their say before new rules are finalised

The Democratic Alliance (DA) is urging South Africans to submit comments on the Department of Electricity and Energy’s Revised Electricity Pricing Policy before the deadline on 27 September.

DA MP and spokesperson on electricity and energy Kevin Mileham said electricity tariffs had risen faster than many household incomes and, repeatedly, faster than inflation, while Eskom’s inefficiencies, legacy costs and financial failures continued to find their way into the price of electricity.

“We cannot allow that to be the blueprint for the future,” Mileham said.

Outdated 2008 policy

The current Electricity Pricing Policy dates back to 2008, when Eskom dominated a very different electricity market. Today, South Africa has private generation, rooftop solar, electricity traders, wheeling and customers increasingly able to choose where their electricity comes from.

“The pricing system must change with it,” Mileham said.

No penalty for reducing Eskom dependence

The DA supports a competitive electricity market in which consumers pay a fair price for the electricity and network services they actually use.

Mileham said consumers who chose an alternative supplier should not be punished for reducing their dependence on Eskom, nor should new fixed and capacity charges become a back door for recovering an inefficient cost base from consumers trying to use less electricity or generate some of their own.

Five demands for the public participation process

Through the public participation process, the DA will demand a full affordability and bill-impact assessment, strict limits and transparency around fixed and capacity charges, fair treatment of households and businesses with rooftop and embedded generation, transparent and time-limited treatment of legacy costs and negotiated pricing agreements, and an independent assessment of whether the National Energy Regulator of South Africa (NERSA) has the capacity to regulate the new electricity market properly.

“This should not be a debate between Eskom, NERSA, government and large industry alone. Every South African electricity consumer has the right to have a say,” Mileham said.

How to submit comments

Comments must be submitted by Sunday 27 September to the Director-General, Department of Electricity and Energy, for the attention of Mr Joseph Maraba.

Written submissions can be emailed to EPP.Comments@dee.gov.za, hand-delivered to Matimba House, 192 Visagie Street, corner Paul Kruger Street, Pretoria, or posted to Private Bag X96, Pretoria, 0001.

Submissions should include the name and contact details of the person or organisation making the comment.

“South Africans are often told what electricity will cost after the decision has been made. This time they have a chance to speak up before the rules are finalised,” Mileham said.

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