Mbali Dhlamini16 March 2024 | 13:38

Electricity bill will lead to steep tariffs - SAFTU

Trade union Saftu has criticised the Electricity Amendment Regulation Bill, passed by the National Assembly this week.

Electricity bill will lead to steep tariffs - SAFTU

Picture: Xanderleigh Dookey-Makhaza/Eyewitness News.

JOHANNESBURG - Trade union federation SAFTU has rejected the Electricity Amendment Regulation Bill as passed by the National Assembly.

It was given the thumbs up this week to pave the way for the unbundling of embattled state-owned power utility Eskom. 

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The bill seeks to provide a market platform that will allow for competitive electricity trading in the country.

SAFTU says this will ultimately lead to the privatisation of the power utility.

Union spokesperson Trevor Shaku says they believe this will lead to steep electricity tariffs.

"They have planned to decommission Eskom’s coal fleet without investing heavily in its renewable capacity. Furthermore, the bill seeks to 'allow for a reasonable return commensurate with the risk'. This means the tariff structure that will be adopted must guarantee the generators of electricity, many of whom will be IPPs at the end of the unbundling of Eskom."