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Eskom hike to hurt millions

Jun 25 2009 22:44

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Johannesburg - The decision by the Monetary Policy Committee of the SA Reserve Bank to leave the repurchase rate unchanged was "disappointing," trade union UASA said on Thursday.

"The decision is particularly disappointing in the light of the shocking announcement of the National Energy Regulator of SA (Nersa) earlier today [Thursday], granting Eskom a tariff hike of 31.3%," said spokesperson André Venter.

"Consumers were pinning their hopes on a drop in interest rates to find relief in difficult economic circumstances, many on the brink of losing their homes or vehicles because it has become impossible for them to keep up payments."

Even if the MPC had reduced the repo rate after the Nersa announcement, "it would have made little difference, as only 1.5 million people with home loans would have benefitted from it compared to the 6.5 million people that will be hit by the Eskom hike," Venter said.

- Sapa

 
 
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