The 11,2% electricity tariff increase proposed by the Nelson Mandela Bay Metro (NMBM), which has been submitted to NERSA for approval, will place an unfair and unsustainable burden on residents and businesses who are already under severe financial pressure.
Households are already contending with rising living costs and such a tariff hike will exacerbate the financial strain, especially on vulnerable communities.
In addition, residents are expected to pay more for a service that is often unreliable, with frequent power outages and poor maintenance. It is unacceptable to try and justify double-digit increases, while service delivery does not meet basic standards.
It will also have a severe impact on the local economy. Small businesses will have to absorb higher operating costs, which could lead to job losses and less investment.
The Metro should address its internal problems, such as maladministration, electricity losses and poor revenue collection, instead of punishing residents for its own shortcomings.
Moreover, exorbitant tariff hikes could encourage non-payment and illegal electricity connections, which will further undermine the Metro’s financial stability and infrastructure sustainability.
Tariff adjustments ought to be fair, transparent and linked to actual improvements in service delivery.
An increase of 11,2% is simply not feasible under the current circumstances and is not in residents’ best interest.
