Why pay for Eskom's mess?
2008-05-16 11:57
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 - Eskom should not be granted a price increase merely to compensate for previous under-performance, ANC secretary general Gwede Mantashe said in Sandton on Friday.
"We must not allow that, we should look forward," he look a Nedlac summit on the electricity crisis.
SA had once had an over supply of electricity and used its low prices to attract investments.
Circumstances had changed but the economy could not afford a sharp spike in prices.
Individuals should also not have to bear the burden of this.
"The increases we come up with must be nominal," he said.
Minerals and energy Minister Buyelwa Sonjica said electricity price increases must be treated with sensitivity.
"It is a fact that electricity cannot be treated as another commodity; it is a key input into our economy and is a basic need for most households.
Any price increase therefore is to be treated with sensitivity and subjected to consultation with all the affected stakeholders."
The Congress of SA Trade Unions general secretary Zwelinzima Vavi said it pained him to say that they accepted that an increase was necessary.
"But we can't simply write a blank cheque for Eskom because they are telling us their costs are rising."
He said a better understanding of the issues behind Eskom's application for a 53% increase was needed.
- Sapa
- SAPA