Johannesburg - Eskom’s “overcooked” tariff increases will
negatively impact the future of the country’s economy, the Energy Intensive
Users’ Group (EIUG) said on Friday.
“The next tariff increases will have adverse effects, and
far-reaching implications for all South Africans,” it said.
“These price increments add additional pressure to
industrial customers to just maintain current production levels, and further
price increases will result in production halts and job losses.”
EIUG said primary energy costs had increased by 19.8% this
year, a significant increase over last year’s 17%.
At the moment the average tariff was 50c per kilowatt hour.
The EIUG expects the tariff to settle around 75c to 80c/kWh
by 2016. This means that there would be another 50% to 60% increase over the
next three years.
The EIUG said it would be undertaking an industry-wide
impact assessment of the electricity price path.
“We have seen a number of refineries and smelters closing
down and need to determine how poor the outlook is to ensure South Africa
doesn’t shed critically needed jobs.”
Eskom was not immediately available for comment.
The EIUG is a non-profit organisation that represents energy
consumers across the country.