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Power prices hiked earlier

Jun 25 2008 20:08

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Johannesburg - Municipalities have been given permission to revise their electricity tariffs again after Eskom was granted a second hike, the SABC reported on Wednesday.

Finance Minister Trevor Manuel gave municipalities the go-ahead, despite this being prohibited by the Municipal Finance Management Act. Manuel had the authority to override the restriction in "emergency cases".

This followed Eskom being granted a 13.3% tariff hike this month, on top of the 14.2% increase granted in December by the National Energy Regulator of SA.

The latest increase meant that local authorities would have to revise their earlier tariffs. If this did not happen, they would have been legally compelled to implement Eskom's new tariff increase only in July next year.

National Treasury chief director Kenneth Brown told the SABC that South African municipalities would be ready by Friday to revise their tariffs again.

- Sapa

 
 
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