South Africa's Power Utitlity Can Survive Without Tarrif Hike Says Analysts

Author:
sabcdigitalnews
Publisher:
sabcdigitalnews
Publication Date:
11 February 2013
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Independent energy commentator, Andrew Kenny, says Eskom is able to cover its costs without the large tariff increase that it has requested. He was speaking this morning on SABC2's Morning Live programme.
The power utility has applied to the National Energy Regulator of South Africa (Nersa) for a 16% tariff hike every year over the new five years. Nersa has held public hearings across the country to get feedback on the proposal. The one constant argument throughout the country is that Eskom's request is too high and will have a negative effect on the economy.