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Manufacturers to appeal tariff hikes

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.

 
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