Eskom aims to hike power prices almost 20%, a confidential draft application shows. If approved, such a drastic increase could negatively affect municipalities and businesses that are already struggling to keep up with high power costs. A steep increase in electricity prices will put upward pressure on inflation, which has been looking more benign for the coming year. The Reserve Bank in its latest monetary policy committee statement cited downward revisions to its electricity tariff assumptions as one reason why its near-term inflation forecast had improved. The Bank is now assuming the electricity prices will rise by only 5.7% in 2017, down from its previous assumption of 7.7% and well below the 9.3% at which electricity prices increased in 2016. Eskom spokesman Khulu Phasiwe said on Monday Eskom would submit its final revenue application for 2018-19 to the National Energy Regulator of SA (Nersa) by the end of June. The confidential draft tariff application, sent to the Treasury a...
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