The current Multi-Year Price Determination, MYPD2, ends on March 31, 2013. New tariffs will be implemented from April 2013. Electricity pylons. (File photo)
Cape Town - Business Unity South Africa (Busa) expects households to spend around R10bn more on electricity by 2018 over Eskom's electricity increase, reports Business Day.
"We are here to plead for the right decisions to be made," Busa deputy CEO Raymond Parsons told the Energy Regulator of SA (Nersa) hearings in Midrand on Thursday.
Busa signalled an alarm that the tariff increase would choke key sectors in the economy, which are aleardy at a tipping point.
The business body suggested that the tariff be revised downwards.
It said Eskom should ask for an increase of 10.8% a year, which would raise the price of electricity to 102c per kilowatt hour from 61c/kWh now, as opposed to the 128c/kWh Eskom’s proposal would deliver.
Last year, Busa said Eskom's electricity tariff increases needed to be carefully managed to minimise their impact on the economy.
"While Busa appreciates the need for tariffs to be cost reflective, the quantum and pace of tariff increases need to be carefully managed in order to forestall any negative impacts or shocks to the economy," CEO Nomaxabiso Majokweni said at the time.
The current Multi-Year Price Determination, MYPD2, ends on March 31 2013. New tariffs will be implemented from April 2013.
Nersa will announce its final decision in February, following an extended period of consultation and public hearings.
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