Eskom: 'Tariff hike not trivial'

Pretoria - Eskom acknowledged that a 34 percent interim electricity tariff hike was "not a trivial matter" and would have a negative effect on the economy and the poor, its chief executive Jacob Maroga said on Tuesday.

"I think in particular acknowledging that 34 percent is not a trivial matter, we understand its impact on the economy, we understand its impact to the vulnerable members of our society and we take your comments very, very seriously," he told public hearings held by the National Energy Regulator of SA (Nersa) in Pretoria.

"But as we move into the funding model we want those issues to be developed so that we can emerge with an integrated solution that takes into account all those issues that have been raised," he said, emphasising once again that the application was "not about Eskom" but "it's about what the country needs".

While acknowledging the impact of the hike, Maroga said the country's electricity supply was at risk should Eskom not receive the "right" increase.

"If we do not get the right amount of increase this year, obviously depending on the size (of the increase) it means we have more risk in terms of security of supply," he said.

During the hearings, the parastatal was accused of flouting the Municipal Finances Act by submitting its application late as well as failing to provide sufficient information on why the steep increase was required.

Maroga said a lot of consultation was required before Eskom could make a determination on the cash it needed and this process has not yet been finalised, hence the application for the interim tariff hike.

- Sapa