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Johannesburg - The National Union of Mineworkers (Num) on Monday criticised the cabinet's endorsement of electricity parastatal Eskom's tariff hike application.
The cabinet endorsed 45% every year over three years for Eskom even before the regulatory processes had been completed, Num said in a statement.
"We are sad that such endorsement is done even before an economic impact assessment is completed, let alone the completion of regulatory processes," said Frans Baleni, Num general secretary.
"We are very worried indeed that these huge increases are going to have a negative impact on workers as overhead costs are pushed beyond 30% in most mines," Baleni said.
He called for wider consultation of interested parties and the consideration of other alternatives to high tariff increases.
"There is clearly no question as to who is going to suffer most.
"There is no question as to who is going to get hurt by both the increment and the consequences of cost cutting measures from the industries," Baleni said.
Eskom announced earlier this month that it had asked the National Energy Regulator of SA for a 45% tariff hike each year for the next three years.
Eskom's tariffs were not at levels that they should be, the parastatal said at the time.
The current price of electricity was around 33c per kilowatt-hour, which did not allow for the recovery of all Eskom's prudently incurred costs and the building of reserves to sustain its asset base.
The parastatal said it needed a price between 80c to 88c a kilowatt-hour.
- Sapa
