Electricty increase granted at 32%
The second major increase in Electricity tarrifs has the South African consumer reeling under dramatically increased prices of all utilities. Although the increase is slghtly lower than the 34% requested by Eskom, this increase combined with a 40 cents per liter petrol price increase, higher property rates and inflation breaching the 3 – 6% levels targeted by Government it is putting new strain on cash strapped consumers.
The latest increase, effective 1 July is to see Eskom through the current financial year and in March next year, eskom will be making applications for additional increases. can south African business, and in particular the mining industry, as a huge consumer of electricty deal with this increase without shedding jobs?
This remains to be seen as mining houses are under pressure with metal prices at current levels.
Consumers and business were hoping for a rate cut late last month which did not materialise and then the announcement yesterday of the petrol price increase, has consumers wondering where this will all end.