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Load shedding News – DA calls for detailed timetable on electricity tariff hikes

1 April 2008

The Democratic Alliance announced last Thursday that it had written to Public Enterprises Minister Alec Erwin asking him to publish a detailed time-table reflecting the proposed magnitude and time frame of price hikes over the next three years.

“We have also asked for information on how performance bonuses are determined and furthermore, for a firm commitment that no performance and bonus shares will be paid at the end of this month,” said party public enterprises spokesperson, Manie van Dyk.

“Eskom and the government’s inability to fix on a clear proposal for electricity price increases is doing little to mitigate the damaging effects of the crisis on corporate South Africa and the greater public.”

On 19 March 2008 the DA had asked for an independent inquiry into Eskom’s proposed tariff hike on the basis that the energy utility had no real idea of its expenditure requirements.

“That Eskom has asked for a 60 percent increase in tariffs just 5 months after requesting an 18.7 percent increase points to a dire lack of effective planning,” he said.

“With reference to the millions in bonuses that Eskom officials have received over the past three financial years, we have further asked the Minister to clarify the conditions that underpinned these bonuses.”

The Minister has refused to resign or at the very least apologise for the crisis that occurred under his watch – he has a duty to account for the decisions made by him and the energy utility. “If he refuses to answer these questions we will invoke the Access to Information Act,” van Dyk said.

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