Of course it should "be allowed" to increase tariffs. In my view, it's unjust and even immoral to use the power of the law to coerce or prevent what should otherwise be free commercial decisions.
But that's not all. In saying this, much else also needs to change.
For the very same reasons, all the laws that restrict, curtail, limit and forbid others from competing with Eskom must be scrapped forthwith. A state-entrenched monopoly or near-monopoly on any commercial activity - including the generation, distribution and resale of electricity - is in my view ipso facto unjust. It robs citizens of their basic and natural right to engage in uncoerced commerce, entrenches inefficiency and rent-seeking, and violates the basic precepts of a just and rational economic, legal, and political order.
So, yes. Eskom should not be prevented from doing as it pleases with its pricing. But neither should there be legal constraints on anyone else from generating their own electricity and reselling it to others in a free and open market.
The problem is Leviathan. We have too much State.
Of course, I know the chances of that changing are less than 0.01%. We're trapped in our own Statist thinking and self-inflicted powerlessness.
No. We are paying through our asses at the moment. Charge the people in the townships for the use of electricity and stop giving it away for free. Even a nominal amount per month will make a difference.
no, as we have shown a lot more digging needs to be done to figure out all the overinflated tenders, weed them out, and prevent new ones from growing in their place.
I wouldn't be surprised to discover so many Black millionaires got this way with Eskom tenders, and all the shenanigans they caused.
until then, get a bigger machete and chainsaw to cut those fat weeds down.
Question should be: "If we give ESKOM the R400b to pay off their debt today, will they break even without tariff increase?" or "What did ESKOM do to become more efficient and to try not to increase tariffs?"
I personally think that it is part of a snowball effect at this stage.
Increase tariff makes other options viable for more middle and upper tier citizens to go partially or fully off grid. Eskom loses income, and thus need to increase tariff again....and so on..
The more they increase tariff, the more viable it becomes to seek alternatives, but if they become more efficient, reduce workforce and root out corruption and dodgy deals in their supply chain, it is a bigger win in the long run for everyone.
Eskom, increasing their prices, is fast becoming counter productive. They just make it more feasible to change to alternative sources for electricity for more people. The more their prices increase the less they will be able to sell, the faster they collapse.