Print article   email story

Sabelo Ndlangisa

YOU are likely to pay 53% more for electricity soon. But only 32% more this year.

The rest will be phased in over a number of years. The 53% tariff hike that Eskom proposed to the National Electricity Regulator of SA has sparked criticism from the ANC, its allies and the public who fear that it will fuel inflation.

The electricity service provider needs the money to build new power plants to satisfy electricity demand and ease the squeeze the country’s economic growth has put on electricity supply.

City Press understands that if government has its way, a 32% tariff for this year could be announced at the energy summit next weekend or immediately thereafter. This would be followed by 20% next year, and other increases phased in over the next four years.

The mooted electricity hike and the current energy crisis will be discussed at the electricity summit, which will be hosted by Nedlac – the economic development body – in Sandton next weekend. Government will announce at the summit that it will subsidise Eskom’ shortfall, which is vital for the Build project, designed to construct a number of power generating stations within the next 10 years.

Nedlac wants to commission a study to identify the cost of electricity by income level and type of community, and assess the effect of current attempts to provide electricity to poor households.

Subscribe to the print edition of City Press