Press Statement dated 3 October 2018
The Public Servants Association (PSA), is concerned over the impact of continuing electricity and fuel price hikes on South Africans. Yesterday’s decision by the National Energy Regulator of South Africa (NERSA), to approve a 4.41% price increase for Eskom, will continue to add financial strain on citizens who are already paying higher prices for basic goods and services. This as the country attempts to recover from poor economic growth and the technical recession.
“This decision to increase electricity tariffs, will in no doubt continue to impact the pockets of South Africans who are already dealing with increases in VAT and petrol prices. Citizens are already paying the price for the mismanagement of State-Owned Enterprises (SOE’s) in the country. It is unacceptable that the public now has to assist in the recovery of unbudgeted costs incurred by the power utility between 2014 and 2017, to the tune of R32.7 Billion”, says PSA General Manager Ivan Fredericks.
“Earlier this year, President Cyril Ramaphosa announced plans by his government to seek interventions to lessen the effect of high fuel prices on the economy, yet tax-payers have been hit with another R1 price increase. This will most likely force increases in public transport costs, affecting workers and decreasing the amount of disposable income for households”, says Fredericks.
The PSA also needs clarity on how the most vulnerable of our society will be assisted when these tariff hikes are introduced in April 2019.
Issued by Ivan Fredericks, General Manager, Public Servants Association (PSA)