Johannesburg - Manufacturers will appeal to the National
Energy Regulator of SA (Nersa) for relief on its planned electricity tariff
hikes, according to a newspaper report on Wednesday.
The manufacturers said the increases would force many
companies out of business, the Business Day reported.
Price cuts were needed for distressed industries as well as
reductions in the proposed 25% electricity price hikes pencilled in for the
next couple of years, chairperson of industry group the Manufacturing Circle
Steward Jennings told the daily newspaper on Tuesday.
Electricity prices for manufacturing had climbed 140% in the
past four years, making it one of the main drivers of rising costs for industry,
Jennings said.
"We have to attack these militant price increases... we
can't afford another two years of 25% increases. We will fall out (of
business), we are already falling out," he said.
Jennings said Manufacturing Circle would submit a white paper
on its appeal for reductions on the tariff to Nersa before the end of the year.
The industry group represents 56 large companies including
SABMiller [JSE:SAB], ArcelorMittal [JSE:ACL], Pretoria Portland Cement
[JSE:PPC], Hulamin [JSE:HLM], Mondi [JSE:MND] and Allied Electronics Corporation [JSE:ATN].
Manufacturing accounts for 15.6% of the economy's overall
output.