Eskom hike: 'Look at positives'

Cape Town - It is necessary to look at the National Energy Regulator of SA's (Nersa) decision on Eskom's tariffs in the context of the possibilities it creates, rather than the negatives that could result, Energy Minister Dipuo Peters said on Thursday.

"While steep increases in electricity tariffs are not desirable, we believe that the positives of this decision outweigh the negatives," she told a media briefing at parliament.

She was responding to Nersa's announcement on Wednesday that it was granting the power utility a 24.8% tariff increase for 2010, 25.8% for 2011, and 25.9% for 2012, and the anger following the announcement.

Peters said without energy security, the levels of economic activity necessary to create new jobs could not be achieved.

"It has been almost 20 years since we commissioned the last base load power station as a country, and our electricity supply-demand balance remains precarious as we enter 2010.

"The need for new capital investment in the sector is beyond debate and inevitably this exerts upward pressure on tariffs," she said.

- Sapa