Information service of the Pontifical Mission Societies since 1927
Johannesburg (Agenzia Fides) - "The increase in electricity tariffs will influence price hikes in food and other essential products that are used by the poor as the firms pass on their electricity price increases to consumers", said a letter sent to the National Energy Regulator of South Africa, by the Justice and Peace local Episcopal Commission.
"We are concerned with the high levels of unemployment in South Africa" is what is stated in the letter sent to Fides, signed by His Exc. Mgr. Abel Gabuza, Bishop of Kimberley and President of "Justice and Peace". "We believe that the 25% increase will most likely slow economic growth and increase unemployment levels. Estimates have already shown that a 15%-25% increase in electricity tariffs would cost the economy around R10bn-R16bn (...). In the current slow economic environment, the sudden increases in electricity pricing will likely dissuade investment and expansion, especially in such energy-intensive industries".
More importantly, says "Justice and Peace", is that "electricity is a public good that should be accessible to all. The 25% increase will put electricity out of reach of the poor and will reverse the gains made by government’s efforts to make electricity available to poor".
The letter proposes to go to the primary cause of this situation: the mismanagement of the national electricity company (ESKOM) and the lack of political will to address the problem. For this reason, "Justice and Peace" concludes by proposing that "the government should be encouraged to set up a national electricity crisis council, made up of broad spectrum of stakeholders that includes civil society and trade unions, that should be empowered to develop a pro-poor turnaround plan for Eskom and oversee its implementation". (L.M.) (Agenzia Fides 18/06/2015)
