UNITED DEMOCRATIC MOVEMENT

MEDIA RELEASE

ESKOM TARIFF INCREASE

STATEMENT ISSUED BY NELSON RAMODIKE, MP
UDM SPOKESPERSON FOR MINERALS AND ENERGY

The decision by Eskom to increase tariffs comes as a huge shock to consumers, especially in rural areas and townships. It exposes the ANC's election promises, of free electricity, as a hollow promise.

This tariff increase is not commensurate with consumer inflation rates. In fact, tariff increases seem more profit-driven than service-orientated. In addition, low standards and quality of services are common, especially in rural areas and townships, with continuous breakdowns and power disruptions. Furthermore, there are irregular and inaccurate meter readings that result in exorbitant bills that are simply unaffordable.

This decision will have a negative impact on the investor environment and put greater pressure on the manufacturing sector (a leading consumer of electricity), leading to price increases in goods and higher inflation. These effects will inevitably be passed on the consumer, the poor. The UDM calls on the Minister of Minerals and Energy to intervene. Government should give urgent attention to alternative energy solutions, instead of hard-pressed consumers with additional expenses.

Enquiries:
Nelson Ramodike, MP
UDM Spokesperson for Minerals and Energy
082 - 973 6288

Cape Town
10 May 2001