Massive Eskom price hike heads to parliament, and census troubles continue

Here’s what is happening in and affecting South Africa today:

• Parliament to hear motion on electricity hikes: Parliament is set to hear a motion brought forward by the Democratic Alliance rejecting Eskom’s proposal for yet another electricity tariff increase. The power utility is said to be seeking a 36% hike for its direct customers and a 40% hike for its municipal consumers in the upcoming financial year. [EWN]

• Census woes continue: Most metros, except Cape Town and Buffalo City, will see significant budget cuts over the next three to five years, with some, like Nelson Mandela Bay, facing a 30% reduction. This is due to the Census 2022 estimate showing 1.6 million fewer households than previously thought. Gauteng and North West provinces will also experience budget share reductions based on the new population count. Grants from the Treasury, which depend on population numbers and poverty levels, have been affected by the Census’s 30% undercount. [News24]

• Eviction looms for thousands of Tshwane shack residents: Families are returning to rebuild their homes in the Mahlangu informal settlement in Olievenhoutbosch, Tshwane, after a fire destroyed over 200 houses. However, they now face the threat of eviction from the land, where about 3,000 people reside. The City of Tshwane Emergency Services temporarily housed 230 fire victims in church shelters, which closed on September 13. [GroundUp]

• Energy department’s solar geyser conundrum: The Department of Mineral Resources and Energy is in litigation with solar water heater suppliers over R324.8 million in storage costs for uninstalled geysers, which is about a third of the total program cost. Suppliers are withholding thousands of units until these costs are paid. The entire program, including storage, manufacture, installation, and litigation, has exceeded R1 billion, with an average cost of R11,500 per unit for the 87,206 geysers procured. As of September 12, 73,777 units had been collected, 58,611 installed, 3,687 damaged, and 13,429 withheld by suppliers. [Business Day]

• Markets: The rand firmed to a near 14-month high on Wednesday ahead of an expected U.S. Federal Reserve interest rate cut and after the local inflation rate fell more than expected. On Thursday (19 September), the rand was trading at R17.53 to the dollar, R23.15 to the pound, and R19.57 to the euro. Oil is trading at $73.71 a barrel. [Reuters]