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Eskom plan to help poor

Oct 13 2009 13:15

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Johannesburg - As part of its plans to mitigate the impact of price increases on the poor, South African power utility Eskom said on Tuesday that it has proposed increasing the free basic electricity allocation from 50kWh to 70kWh.

This means that consumers using only 70kWh or less would not have to pay for their power.

Revealing the details of its multi-year price determination for the year to 2012/13, Eskom said the average low-income customer's consumption was 80kWh.

Eskom has recommended that incremental costs be funded through a cross- subsidy from within the industry.

Eskom has asked the National Energy Regulator of South Africa (Nersa) for either a 146% price hike next year, with 12% increases over each of the two years that follow, or a 45% increase every year for the next three years starting next year.

The power utility has recommended the phased approach since it believes it would have a less severe impact on customers and the economy.

- I-Net Bridge

 
 
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