Verdict on Eskom prices in June
07/04/2008 14:38  - (SA)  

'Poor to be hit by Eskom hikes' Cheap power age over for SA Power price hike: Deal with it

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Johannesburg - South Africa's energy regulator will make its decision on proposed power price increases by the state electricity firm Eskom on June 6, it said in a statement.

The National Energy Regulator of South Africa (Nersa) in December granted Eskom permission to increase tariffs by 14.2%, but Eskom asked this to be increased to 53% as it scrambles to boost capacity.

Eskom plans to spend R343bn over the next five years to increase its generating capacity, and hopes higher tariffs will cover some of the costs.

The company has been struggling to meet the demands of Africa's largest economy and has resorted to rolling blackouts to cut demand since the beginning of the year.

The government has supported Eskom's proposed price hike. Public Enterprise Minister Alec Erwin has said Eskom's ability to raise capital could be undermined if it is not allowed to increase tariffs.

But the central bank has warned big increases will add pressure to already high inflation.

Nersa said it will invite public comment on the proposal from April 8, and will hold a public hearing on May 23.

- Reuters

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