South Africans not buying into electricity price hikes
“This must be seen as a signal failure of communication by all parties to the problem,” TNS Research Surveys said in a statement.
“It may seem that the need for more capacity has been aired at length in the media, but it is clear that people do not yet truly understand the full consequences of a failure to build this capacity.
“In addition, it is likely that people do not feel the increases are fair coming so high and in such a short space of time.
“No doubt, if increases had been implemented earlier and more gradually, this might not be an issue: it is the sudden need for price rises that is part of the problem,” TNS said in a statement.
The survey found that eight out of ten South Africans believed they would battle to cope with the proposed electricity price hikes.
A quarter felt the prices were justified by the need for greater power capacity.
Only people without electricity appeared relatively unconcerned about the high price increases.
Eskom has argued that the hike is necessary to fund its R385 billion expansion plan.
While it initially asked for three annual price increases of 45 percent, it later reduced the amount to 35 percent amid concerns about the inflationary effect and the impact on the economy as it emerged from a recession.
Public hearings into Eskom’s increase application started on Monday in Mpumalanga, with a second round convened by the National Energy Regulator of South Africa in Limpopo on Tuesday.
These hearings were expected to be attended by Eskom, the Congress of Trade Unions of SA, the office of the Limpopo premier, the Plastic Converters Association of South Africa, South African Non-Governmental Organisation Coalition and Nhzelele Electricity Customer Communication Forum.
“People may well feel that the necessary money should come from elsewhere, such as government or via the raising of loans,” TNS said.
“People may well feel that the cost of the new capacity required is over-estimated.
“That this will lead to hardship for many is an almost unanimous view. It will also add inflationary pressures, creating a second round of hardship, as well as slowing economic growth, a third ripple effect,” it said.
The survey was conducted among 2000 adults (1260 blacks, 385 whites, 240 coloureds and 115 Indians/Asians) in the country’s seven major metropolitan areas and had a margin of error of under 2.5 percent.
It found that concern about the increases was highest among older people and the most affluent, and was particularly prevalent in Pretoria and Cape Town. Middle income groups and people under 34 were most accepting of the planned price hike.
TNS said a “very active campaign” was needed to show people how to save electricity.
“The use of practical alternative energy sources needs to be much more proactively championed,” it said.
“These findings show that electricity has become a political hot potato.
“It is also one that affects service delivery. It may be that the provision of power to those still without will slow significantly –another headache for government with less than two years before local government elections.”
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