The Congress of South African Trade Unions is extremely angry at Eskom's outrageous and insensitive request for a whopping 45% a year electricity tariff hike over the next three years.

It would mean that by the end of those three years consumers would have been hit by a 200% hike in electricity tariff hikes. COSATU rejects it outright, especially given the continued absence of clear and effective measures to protect the poor.

If this trend of steep electricity hikes continues many of the poor will not be able to afford electricity at all, and will turn to more dangerous sources of heat and light, such as paraffin and gas. COSATU will campaign for the amount of free basic electricity for the poorest users to be increased by the same percentage the electricity tariff would have gone up by over the next three years.

As well as the direct blow to residential consumers, this proposed increase flies in the face of government's efforts to create decent work through small and medium businesses, many of which will be unable to survive such increases year after year.

COSATU notes that big, intensive energy users will continue to pay much less per unit for the massive amounts of electricity they use. These heavy electricity users reap further benefits by hedging their electricity costs through secret long-term contracts they enter into with Eskom.

COSATU supports the call by progressive NGOs that these contracts must be opened up for public scrutiny. The continued subsidisation of big industrial consumers by residential consumers must be reversed urgently.

The federation repeats its call for government to intervene and take responsibility for Eskom's capital expansion programme, financially and through guarantees, rather than to impose this burden on consumers. If necessary, an infrastructure levy must be imposed on industrial users, or one-off tax and the rich, to fund Eskom's recapitalisation programme. We also call for more investment in the renewable sources of energy.

COSATU will be vigorously opposing this proposed increase when it is submitted to NERSA and will engage with government and business in NEDLAC. Should the proposal be accepted regardless of the public opposition, COSATU will take to the streets and organise strike action under Section 77 of to the Labour Relations Act, to mobilise its members and the public against this shocking proposed increase.