eskom municipal debt

Eskom electricity pylons. (Brent Meersman)

“Eskom are bludgeoning South Africans with new tariff hikes”- Energy expert

Ted Blom has called the energy giant out for their greed.

eskom municipal debt

Eskom electricity pylons. (Brent Meersman)

Ted Blom is a member of the Mining and Energy advisory team. He’s advising consumers to resist Eskom’s proposed 19.9% tariff, as they have no legal right to enforce it.

The claims come as the energy firm announced intentions to apply to the courts for a review of Nersa’s decision to only grant them a 5% increase for 2018/19, as opposed the near-20% figure Eskom had requested.

However, Blom argues that they haven’t got a leg to stand on here, as their own incompetence has already decided for them.

The PAJA (Promotion of Administrative Justice Act) states an appeal must be made within 180 days from a decision. As Nersa’s ruling was published on 15 December 2017, Eskom’s request should have been made before 15 May 2018.

They’re a month over the deadline as it stands – something Blom labels as typical of Eskom’s “entangled mess”:

“This entire pricing issue is becoming an entangled mess. The resolute board announcement over the weekend that they require far steeper tariff increases to double earnings, is a familiar tune which they have been signing since 2008.

“It seems Eskom’s Board remains a one trick pony where the only remedy is to bludgeon the electricity consumer.”

Blom also lambasted the new regime at Eskom, for doing nothing to turn the tide of corruption and greed at the utility. He also advised citizens to flat-out refuse the incredibly steep hike, asking consumers to “resist price increases”:

“You cannot expect a board with zero experience to turnaround a complex organisation like Eskom, especially when faced with a corrupted and incompetent senior management feeding them rubbish. “

“Under the current setup, you have the corrupt leading the blind – a recipe for a far greater disaster. Until Eskom starts making sensible decisions, we strongly suggest civil resistance to price increases and will be publishing the means on our website later this week.”