Data provided by iNet BFA
Loading...
See More

Eskom hike will choke factories

Jan 31 2013 17:43 Sapa

Sactwu said companies were already retrenching workers and others were cutting down on workers' hours in order to try to save money ahead of Eskom's increase. (Picture, Beeld)

Related Articles

Why must the poor fund Kusile, asks body

Eskom hike could spark violent protests

Protester: Eskom hikes killing us

Eskom hike to hit municipalities hard

Eskom price hearings start in Midrand

Eskom hikes will cost households R10bn

 
Johannesburg - A 16% increase in the electricity tariffs would result in many factories shutting down, the National Electricity Regulator of SA (Nersa) heard on Thursday.

The SA Clothing and Textile Workers Union (Sactwu) said this emerged from a survey of 93 different companies employing about 20 400 workers in the clothing, textile, leather and footwear sectors.

"Fifty-five percent of them said they would shut down and 67% said they would have to conduct downsizes and retrenchments," Sactwu official Simon Eppel told the hearing in Midrand.

He said this meant about 14 000 people would lose their jobs.

Many companies were already retrenching workers and others were cutting down on workers' hours in order to try to save money ahead of the increase, said Eppel.

He recommended that Eskom propose an inflation-linked increase or a below-inflation increase.

The Nersa panel, chaired by Thembani Bukula, is gathering views on Eskom's request for a 16% increase in electricity prices each year for the next five years (known as MYPD3).

The proposal will more than double the price of electricity in five years, taking it from 61 cents a kilowatt hour in 2012/13, to 128 cents a kWh in 2017/18.

Melita Steel from Greenpeace Africa rejected Eskom's call to extend the MYPD3 over a five-year period.

"We propose a tariff application that would run for a maximum of two years."
She said there were no guarantees that the five-year MYPD3 plan by Eskom would have any success.

Steel said besides the tariff hike increase, Greenpeace was also against Eskom's proposed nuclear plans.

"If all South Africans are to finance Eskom's capacity expansion programme, then Eskom should be investing in substantial renewable sources."

She said the nuclear programme was an environmentally irresponsible programme that would be even more expensive to run than the current method of coal.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

eskom  |  electricity tarrifs  |  jobs
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Savings survey not realistic

Fin24 readers respond to an in-house survey, which found that 60% of readers were confident that they would be financially comfortable in their retirement.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...