Positives of Eskom tariff increase outweigh negatives – minister

2010-02-25 10:24

It is necessary to look at the National Energy Regulator of SA’s

(Nersa’s) decision on Eskom’s tariffs in the context of the possibilities it

creates, rather than the negatives that could result, Energy Minister Dipuo

Peters said today.

“While steep increases in electricity tariffs are not desirable, we

believe that the positives of this decision outweigh the negatives,” she told a

media briefing at Parliament.

She was responding to Nersa’s announcement yesterday that it was

granting the power utility a 24.8% tariff increase for this year, 25.8% for next

year, and 25.9% the year for 2012, and the anger following the


Peters said without energy security, the levels of economic

activity necessary to create new jobs could not be achieved.

“It has been almost 20 years since we commissioned the last base

load power station as a country, and our electricity supply-demand balance

remains precarious as we enter 2010.

“The need for new capital investment in the sector is beyond debate

and inevitably this exerts upward pressure on tariffs,” she said.

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