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Cope: Statement by Philip Dexter, Congress of the People spokesperson, calling for Nersa to reject Johannesburg power hikes (27/07/2011)

27th July 2011

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Congress of the People representative on the Energy portfolio committee, Phillip Dexter, today slammed the profiteering by Johannesburg City Power after reports of a proposed 117 percent increase in mark up on the rate that Eskom sells electricity to the city.

"Johannesburg is the industrial and business hub of Africa, and for City Power to drive business away through what appears to be reckless profiteering is irresponsible," said Dexter.

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Dexter called for the National Energy Regulator of South Africa to be firm on the issue of the power hikes.

"Citizens and businesses cannot afford a 117 percent hike in rates. It is not in the best interests of the country for this decision to be implemented. NERSA must show some teeth in dismissing the proposed unreasonable hike, and rather look at a reasonable increment to bring Johannesburg's power increases in line with increases in the rest of the country.

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"Electricity should be getting cheaper, not more expensive. The move to renewable energy through building wind and solar farms, as well as empowering independent power producers to enter the market must be more than just lip service. Ordinary citizens and businesses are bearing the brunt of a lack of strategic planning and poor implementation by the government as far as energy is concerned."

Dexter also called into question government's commitment to breaking the coal lobby's stranglehold over ordinary citizens.

"At the current rate of delivery, it would take 300 years for solar powered geysers to be rolled out to South African households. This is symptomatic of how little is being done to mitigate for the current energy crisis."
 

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