advertisement
nuclear
Facebook
X
LinkedIn
WhatsApp
Reddit

Eskom’s 16.6% price hike decision looms next week

After a failed application to the National Energy Regulator of South Africa (Nersa) last year, Eskom had to go back to the drawing board in order to lobby the regulator to approve a request for a 16.6% increase in electricity tariffs.

After a number of public consultation sessions, Nersa will announce its decision next week on whether the hike will come into effect, or if Eskom will have to make do.

“The regulator had said to us they will make a determination on 25 February so we are waiting with bated breath what the decision will be but we are hoping for a positive outcome,” Eskom’s Khulu Phasiwe told EWN.

According to Eskom, the reason it needs to increase the price of electricity is because it spent about R22.8 billion last year to keep the electricity flowing. The majority of the cost was pumped into the Open Cycle diesel generators.

As much as Eskom needs the money, the proposed hikes face stiff opposition.

According to EWN, the Chamber of Mines complained that if the hike came into effect, it will cause the loss of 40 000 jobs.

“The last thing an investor wants are surprises. We are seeing disinvestment, we’re seeing the economic turmoil and at the heart of that, I think Eskom has a huge role to play,” said Sibanye Gold’s Peter Turner.

[Image – CC by 2.0/Sarah Macmillan]

advertisement

About Author

advertisement

Related News

advertisement