Data provided by McGregor BFA
All data is delayed
Loading...
See More

Eskom laments 8% electricity hike

Feb 28 2013 15:19 Sapa


Related Articles

Eskom tariff hikes announced

Nersa: 8% hike enough for Eskom

Gordhan warns unprofitable parastatals

Eskom: Power supply extremely tight

Numsa, Manuel: Eskom hikes 'unacceptable'

ANC: Eskom hike will hit the economy

 

Johannesburg - An electricity tariff hike of 8% over the next five years will present difficulties, Eskom said on Thursday.

"We will be studying the decision in detail to understand its consequences and impact for Eskom," spokesperson Hilary Joffe said.

"We have noted the decision and it will present a challenge for Eskom."

However, Eskom would endeavour to keep the country's lights on.

"We will now be looking at how we can meet this challenge."

Eskom had applied for a 16% increase in electricity prices in each of the next five years.

This was more than double the current price, taking it from 61 cents a kilowatt hour in 2012/13, to 128 cents a kWh in 2017/18.

The National Energy Regulator of SA said its decision was based on facts, adding that a detailed analysis had been done.

The Federation of Unions of SA was pleased with the lower tariff rate.

"We welcome the 8% increase.... Although the increase will still be felt by working people, we feel that this is much better than the 16% requested by Eskom," said Fedusa general secretary Dennis George.

He said the decreased rate will impact on inflation.

George said the 8% was exactly half of Eskom's bid and this meant electricity, which cost 65c per kilowatt hour in 2013, would cost 89c per kilowatt hour by 2018.

Western Cape Finance MEC Alan Winde welcomed Nersa's decision.

"While we understand that the country is experiencing a shortage of energy... Eskom needs to look at innovative ways of producing electricity, such as renewable energy," he said in a statement.

He said renewable energy was one of the biggest investment opportunities in the Western Cape.

"We expect that between 40% and 50% of wind power projects in South Africa and 15% of solar energy projects will be set up in the Western Cape by 2014, to provide for about 10% of our region's energy needs."

Winde said the tariff hike would have the greatest affect on the already "over-burdened" consumer and entrepreneurs operating in the small, medium and micro enterprise sector.


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

nersa  |  eskom  |  electricity tariffs
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
69 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Land reform process lawful - Zuma

The land reform process is being done according to the law and the Constitution, says President Jacob Zuma.

 
 

Latest elections multimedia

11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May

Money Clinic

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