Loading...
See More

Eskom's 'overcooked' tariffs slated

Aug 26 2011 12:24 Sapa

Related Articles

Eskom gets large loan for wind project

Eskom rebuilds coal stocks after strike

Eskom boss not ashamed of bonus

Eskom warns of tight supply in summer

Minister unveils Eskom chiefs' pay

State levy adds to Eskom's coal cost

 

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.

 
eskom  |  tariff increases
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
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!

 
 

For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

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