'Poor to be hit by Eskom hikes'
27/03/2008 12:38  - (SA)  

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Johannesburg - If Eskom's bid for a 53% hike in tariffs is approved, the poor will be hit the hardest, said the Federation of Unions of SA (Fedusa) on Thursday.

"We are against the move as we feel the poor will be hit hardest by the hike. For instance, an average family who is currently paying R300 would pay R450, " said Fedusa in a statement.

The federation said a funding model that would be conducive for SA as a developing country had to be negotiated. It called on government and labour to discuss the funding model.

"Workers and the poor must not be made to pay for the mistakes of the government's bad planning with regard to the electricity crisis."

The energy utility has asked for its approved 14% tariff hike for 2008-2009 to be increased to 53%.

"We call for a moratorium on electricity price increases, on the payment of bonuses to Eskom executives and on retrenchments because of the electricity crisis," said Dennis George, Fedusa general secretary.

Fedusa said it was "totally" unfair for Eskom to keep a gun against consumers heads, while it tried to negotiate a permanent solution to the national electricity crisis.

- Sapa

- SAPA

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