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» 25.03.2010 - SA’s business eyeing oil in Uganda
» 25.03.2010 - Banks cut prime rates
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» 08.03.2010 - SA opposition demands probe into Zuma
» 04.03.2010 - Britain no yet convinced to lift Zim sanctions
» 03.03.2010 - More black-outs for SA after World Cup











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South Africa
Economy - Development | Politics | Society

SA's 35% tariff-hike for public scrutiny

afrol News, 11 January - The South African enery regulator has commenced pubic hearings in the country today to address a desperate bid by Eskom, the national utility company to effect a tariff hike.

Eskom has made application for a 35 percent tariff hike after its 45 percent application hit a rock late late year.

The company was forced to reduce is price demand following attacks from both the unions, the business sector and other players that its 45 percent demand was beyond the country's inflation targets and capacity.

Eskom was in part asking for a high tariff hike to raise funds for its R385 billion power expansion programme as well as to guard against future power problems, like last years power black outs which affect many industries, especially the mining sector.

The hearing which are expected to be concluded by 21 January, are scheduled to reach all the nine provinces of the country.

The South African utility company has been struggling to source funding for its expansion programme, with very little coming from the government itself. The country, which will be holding the World Cup in June this year, has been challenged by amongst others having to secure its power capacity during the event and having to bank on neighbours for secure supply and backup contracts.

South Africa gets most of its electricity from coal, with the country now looking at alternative power sources to meet its ever growing electricity demand.


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