Mr Speaker, the UDM is shocked to learn that Eskom has posted a profit of R12,8 billion. South Africans unsuccessfully protested against Eskom's exorbitant tariff hike, which was portrayed as a necessary step to ensure the sustainability of the power utility giant.
However, given the fact that a big portion of the increase in revenue is attributable to the tariff increase, it is clear that Eskom's senior management only relied on the tariff increase to enhance profitability without effecting significant improvements to Eskom's overall organisational efficiency.
It is immoral for Eskom to post such a high profit in the face of grinding poverty, poverty in which the majority of citizens cannot afford electricity and find themselves having to resort to illuminating paraffin and firewood for energy. It is clear that the 25,3% tariff increase this year was a rip-off.
This high profit should obviate the need for further tariff hikes. Thank you, hon Speaker.