18 December 2017

South Africa: Cosatu Condemns Eskom Tariff Increases

Photo: Pexels
(file photo).
press release

COSATU notes that credit rating agencies have downgraded Eskom's status to what they call 'junk', but this cannot be used as an excuse to ask consumers to shoulder the whole cost of getting Eskom back on its feet. Government, as the shareholder, must also intervene in a decisive way to help Eskom get out of its financial problems and to raise the funds needed. The issue of State Capture and Corruption cannot be divorced from the Eskom tariff hikes.

Workers and their families have already been slapped with increases in fuel, food and other basic services like health. So consumers can't afford any further increases in the cost of living and will be devastated by this latest blow from Eskom, which will plunge even more people into poverty.

In the long-run the tariff increases will have even more serious consequences for the economy. Electricity is a major part of the running costs of nearly all companies. Many will become unviable and start to retrench workers and fewer new businesses will get started.

This will slow down economic growth even further and have a catastrophic impact on an already limping economy with high levels of unemployment, at more than 36%, and more than 50% of South Africans living in poverty, according to Stats SA.

Increases in the cost of living will also leave consumers with less disposable income ,which will put the economy further in trouble. The importance of the purchasing power has been demonstrated in the relatively high economic growth rate and more job creation in the US, which has introduced a national minimum wage.

More on This

Power Utility Disappointed With 5.23 Percent Tariff Hike

Eskom has expressed disappointment at the National Energy Regulator of South Africa's (Nersa) decision to only grant it… Read more »

See What Everyone is Watching

Copyright © 2017 Congress of South African Trade Unions. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.