Local enterprises are livid about the impact that an electricity cost hike of over 30% has had on business.
Local enterprises are livid about the impact that an electricity cost hike of over 30% has had on business.
Business and restaurant owners interviewed by Grocott’s Mail say they are finding it hard to make a stable profit as some report increases of up to R6000 a month on their electricity bills.
Manager at Slip Stream Sportsbar (SSS), Leon Bezuidenhuit says his profit margins have shrunk significantly.
He also said that the electricity bill went up considerably from R8 000 to R14 000 in the last two tariff hikes.
A restaurant manager in High Street (who wishes to remain anonymous) is upset about this situation.
”It’s stupid, why do we have to pay for the government’s screw-up?" he asked.
He also said that he does not understand why we have to pay the government so much, especially during a recession.
He said that his business had been badly affected by the increase, as his electricity has gone up up by R2 000 per month.
The manager of Buddy’s liquor store, who also does not want to be named, said: “We should all just make fires outside and give the government their electricity back.”
Although many businesses have not experienced a noticeable decrease in customers, local citizens are also affected as Grahamstown has more than 50% of its residents living in poverty.
“Residents barely have enough to eat, now they have increased the electricity price by more than 30%!” one manager exclaimed.
Ndumiso Madindam, the manager of Dinangwe Tavern said that he recently changed from a billing system to prepaid electricity after he was billed R3 000.
"In July I changed to prepaid and now it’s better because I spend up to R560 per month on electricity," he added.
KwaNokwakha Tavern in Joza, which is popularly known as Kwa 5, says an electricity coupon of R50 used to last them for two to three days but now a R100 coupon lasts only three days.
Manager Nomvuyo Mfecane says that electricity runs out quickly because she uses six refrigerators and a satellite dish.
"I wish they could consider my household for an indigent subsidy and issue us with free basic electricity as well," she added.
While most of the local businesses are affected by this high tariff hike, the impact is not the same throughout all businesses.
The owner and manager of Red Cafe, Justus Wagener says he has not been affected much as "I’m on prepaid".
Bezuidenhout said that people are losing bread money and that it is going to be worse when the electricity increases by a projected further 40% later this year.
Albany Road Sports Bar manager Ntombentsha Dyantyi said they have not noticed any difference as they still spend R1 000 per month to buy electricity for their prepaid meter.
