28 February 2013
For years I have denounced the entire process
of financing Eskom's build program through tariff increases; it is a
fraud on us all. NERSA was established to determine tariff
increases on the basis of changed operational costs and market
conditions, not to finance capital cost and expansion.
It is not equipped to do so and forge alternatives to the
build program. It is
bound to go with the flow of events created by Eskom.
It is good that on this occasion it resisted Eskom's
outrageous requests, but this is part of a charade in which in
all likelihood Eskom already discounted in its request the
possibility that Nersa would halve it.
Eskom will undoubtedly lament this decision
merely to make it more credible. The reality is that tariff increases are
indirect regressive taxes which are killing our economic growth
and family savings alike, impoverishing the whole of our
society. The build
program should have been financed either with an international
tender which would have attracted needed foreign investments or
through the State budget so that its costs could be more
equitably distributed and absorbed over a longer period.
IFP Spokesman on Public
Enterprises, Mario GR Oriani-Ambrosini, MP 082 556 0240