In partnership with
  • Inside Labour

    No South African, with or without a job, should be condemned to poverty, says Patrick Craven.

  • Rating agencies and SA

    Warts and all, rating agencies kept SA on the straight and narrow, says Daniel Silke.

  • Crisis management fail

    Ford SA lost the plot right after the tragic death of a Kuga owner in 2015, says Solly Moeng.

All data is delayed
Loading...
See More

EIUG: Electricity increases prohibitive

Oct 23 2012 16:51

Johannesburg - Eskom's application to raise electricity prices came under fire from the Energy Intensive Users' Group (EIUG) on Tuesday.

The increases were "prohibitive" and would heavily impact on industry, commerce and domestic users, the group said.

"South Africa must, as its top priority, seriously examine the cost of electricity to its productive sector, failing which, no one will be able to afford electricity."

The EIUG represents the largest users of electricity in the country, including mines and heavy industry.

The increases would lead to the loss of existing production capacity, constrain new growth, and result in job losses.

Maintaining subsidised services at the expense of jobs would be a grave miscalculation, EIUG said.

Two issues needed to be addressed.

"The inefficiencies in the current production and use of electricity must be addressed in order to remove significant, uneconomical costs.

"The taxes and levies in electricity that have nothing to do with electricity must be removed and brought under control."

EIUG commended Eskom for improving the transparency of its application.

Eskom's application for a 16% increase in electricity tariffs every year for five years would result in the cost of energy more than doubling from 61 cents a kilowatt hour to 128 cents a kWh in 2018.

eskom  |  tariff hikes

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
1 comment
Comments have been closed for this article.
 

Company Snapshot

We're talking about: SMALL BUSINESS

From fossils to finance – that’s been the career trajectory of Dr Merrill van der Walt, a palaeontologist until recently. She is now a statistician with a difference.
 

Money Clinic

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

Voting Booth

How did you buy your property?

Previous results · Suggest a vote

Loading...