Eskom price hike outrage: Activist Lydia Petersen unpacks tariff increase
Just when South Africans think Eskom-induced irritation can't get any worse, it emerges that Eskom bosses want citizens to pay up now for bad management mistakes in the past. The plan is to increase Eskom bills by at least 15%. Helping BizNews editor-in-chief Alec Hogg unpack the details is Lydia Petersen, an environmental activist who joined demonstrators in Cape Town where the National Energy Regulator of SA is considering arguments from Eskom to get consumers of electricity to foot the bill for shortfalls. State-owned entity Eskom has been the site of rampant corruption, with former president Jacob Zuma's friends spotting easy opportunities to raid taxpayers' funds through Eskom's back door. International ratings agencies say Eskom is such a drag on the economy that it is one of the major problems that needs to be fixed before funds will flow into South Africa, boosting growth and employment. – Jackie Cameron
Environmental activists and others from civil organisations critical of the management of power utility Eskom have slammed the power utility's decision-makers for trying to secure a 15% tariff increase on top of huge increases they had in the past.
In this podcast, Lydia Petersen of Project 90 By 2030 speaks to Alec Hogg about Eskom's Regulatory Clearing Account (RCA) and why members of her group have held public demonstrations about the mechanism that allows for big tariff hikes.
Eskom describes the RCA as "a monitoring and tracking mechanism that compares certain uncontrollable costs and revenues… to actual costs and revenues incurred by Eskom".
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