South Africa: Eskom Hikes Unavoidable - Gigaba

Johannesburg — The 16 percent electricity tariff hike every year for the next five years is unavoidable, Public Enterprises Minister Malusi Gigaba said on Tuesday.

"It [the tariff increase] is not fair, [but] it is necessary," Gigaba said at a business breakfast in Fourways.

"Given the challenges that we have... we need to ask South Africans to bare the collective pain to fund this build programme and go through this painful process."

In October, Eskom submitted an application to the National Energy Regulator of SA for a 16 percent tariff hike every year for the next five years.

Gigaba said the poor needed to continue to be shielded. They would be charged a single-digit flat rate determined by municipalities.

Eskom asked municipalities to be considerate of their mark-up when charging more for electricity, as it was a source of revenue, Gigaba added.

Ads by Google

Copyright © 2012 South African Press Association. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.