Madam Deputy Speaker, Parliament and the South African people have been duped. The National Energy Regulator of South Africa, Nersa, granted Eskom a tariff increase of 45% each year for three years after a tariff increase of 27% last year and 31% this year. This means an overall increase of 509% in four years. The people of South Africa cannot afford this.
South Africans had no say in this indirect form of taxation without representation. When it appeared before the Public Enterprises portfolio committee, Eskom was allowed to refuse to tell Parliament how large a tariff increase it was requesting and to withhold the copy of its application to Nersa, even though the same application had been given to Salga and other stakeholders.
Parliament could not debate this fundamental matter, and it was labouring under the false impression created by press reports of a once-off 40% increase. This is nothing short of contempt of Parliament, the sovereignty of the people and the basic tenets of our democracy. The people must now pay and shut up, with no recourse. It is almost grounds for a tax revolt.
Eskom's capital and infrastructure expansion programme could have been funded through Treasury, giving the people a say in the budgetary process in this Parliament. Instead, this hidden form of taxation is unfair. It is inherently regressive, forcing the poor to pay more than the rich. This increase will deepen the economic crisis. It increases the cost of all goods and services and boosts inflation. If the government was trying to give a crutch to the stumbling economy, this act of folly kicks the crutch away. Thank you, Madam Deputy Speaker.