Johannesburg - Business Unity SA (Busa) praised the National Energy Regulator of SA's (Nersa) decision on Thursday to limit an electricity price rise to 8% over the next five years.
Eskom had asked for a 16% increase each year for the next five years.
"The excessively steep rises in electricity tariffs in recent years have been damaging to growth and employment," Busa special policy adviser Raymond Parsons said in a statement.
"[The increases have] raised the costs of doing business, and have put many business enterprises at risk."
It was to be welcomed that Nersa had taken into account submissions made by business during public hearings on the increases.
"These clearly played an important role in the regulator's final decision," said Parsons.
"The fact that the increase of 8% per annum is projected over a five year period also makes the trajectory of electricity costs more predictable for business planning."
He said the debate surrounding Eskom's latest tariff application again highlighted the need for more competition in the energy sector.
"Busa therefore hopes that the Independent System and Market Operator Bill, which is a step in the right direction towards introducing independent power producers, will be expedited in Parliament," he said.
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