Positives of Eskom tariff increase outweigh negatives – minister

2010-02-25 10:24

It is necessary to look at the National Energy Regulator of SA’s

(Nersa’s) decision on Eskom’s tariffs in the context of the possibilities it

creates, rather than the negatives that could result, Energy Minister Dipuo

Peters said today.

“While steep increases in electricity tariffs are not desirable, we

believe that the positives of this decision outweigh the negatives,” she told a

media briefing at Parliament.

She was responding to Nersa’s announcement yesterday that it was

granting the power utility a 24.8% tariff increase for this year, 25.8% for next

year, and 25.9% the year for 2012, and the anger following the

announcement.

Peters said without energy security, the levels of economic

activity necessary to create new jobs could not be achieved.

“It has been almost 20 years since we commissioned the last base

load power station as a country, and our electricity supply-demand balance

remains precarious as we enter 2010.

“The need for new capital investment in the sector is beyond debate

and inevitably this exerts upward pressure on tariffs,” she said.


Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.