Power price increase over 5yrs
2008-05-16 21:21
Special Report
Eskom is set to seek a 34% hike in electricity tariffs, back from the 88% rise it had been considering due to the global economic slowdown, a newspaper says.
Johannesburg - Any increase in electricity prices would occur gradually over five years, Eskom was told on Friday at a summit in Sandton on the electricity crisis, SABC news reported.
Government, labour, the ANC and community forums were represented at the summit.
Eskom and municipalities were told to protect the poor from the impact of the increases. Any Eskom increases should be more "poor-sensitive".
The tariff increases would not be introduced in one massive hike, but would be phased in over five years to reduce its negative impact.
Eskom would re-submit its application to the National Energy Regulator of South Africa (Nersa) on the proposed tariff hikes.
The summit delegates determined that government should pump more money into Eskom to maintain its financial health and credit rating.
The summit has appointed individuals such as ANC secretary general Gwede Mantashe, Cosatu's Zwelinzima Vavi, the SACP's Blade Nzimande and Public Enterprises Minister Alec Erwin to meet urgently and agree on the appropriate tariff increases to be spread over five years.
Nersa would be briefed on the outcome of the summit on Tuesday next week.
Members of the public could voice their opinions at Nersa's public hearings next Friday, the SABC reported.
- SAPA