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Eskom delays tariff increase

Mar 17 2009 16:12

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Johannesburg - Parastatal Eskom admitted on Tuesday that it has delayed its application for tariff increases to the National Energy Regulator of SA.

Eskom's spokesperson Fani Zulu told Sapa the reasons for the delay included the global financial crisis.

The crisis, Zulu said, had "affected our customers, our ability to borrow - given the state of the global markets - and Eskom's forecast of the growth in the demand for electricity".

Zulu said Eskom had had to review some of its assumptions that underpinned the tariff application following the world's financial crisis.

He added that the approval in December of the electricity pricing policy by cabinet had also necessitated the review of the application.

Lastly, Zulu said, Eskom had to confirm other sources of funding before finalising the tariff application.

"As you may be aware, the minister of finance announced in February government guarantees to Eskom totalling R176bn.

"The approved guarantees are a very important building block in accessing other sources of funding," Zulu said.

He also confirmed that Eskom wanted a significant increase in tariffs.

This, however, was nothing new, he said.

"Eskom has said this, government has said this, it's been in the media so Eskom asking for an increase in tariffs is nothing new."

- Sapa

 
 
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