Media article - Nersa has exacerbated municipalities’ inability to pay Eskom – Salga

This media article describes how the South African Local Government Association (Salga) is concerned about the approval of the Eskom tariff application by the energy regulator of South Africa.  According to Salga, the decision will result in accelerated levels of non-payment and illegal connections to name a few and this will worsen municipalities' inability to pay Eskom. This also comes while municipalities are still recovering from the pandemic, making it difficult to collect revenue and service municipal debt. 

Salga’s national working group chairperson for electrical energy, and public work, Thami Ngubane said in an economy where we are likely to see weak economic growth this year, with stagflation risks, high unemployment and high inflation rates with rising prices and overall cost of living, consumers are cash-strapped and the electricity price hike is unaffordable.

Abstract based directly on the source.