Business Day Spotlight
PODCAST | How latest electricity tariff hikes have hit consumer pockets
Rob Gwerengwe, CEO of the middle market segment at FNB, talks about the impact of power price hikes on SA consumers
In this edition of the Business Day Spotlight, we talk about the impact of recent electricity tariffs hikes on SA consumers.
Our host Mudiwa Gavaza is joined by Rob Gwerengwe, CEO of the middle market segment at FNB.
The discussion begins with Gwerengwe explaining the effects of the recent 15% increase in electricity tariffs for the 2021/2022 financial year on consumers. His business unit caters to banking clients earning between R120,000 and R300,000.
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He says many households in that segment, which accounts for a large portion of the economy, will have to review their already stretched budgets to keep the lights on.
According to FNB, electricity is one of the largest spending categories for entry to middle-income customers. As a result, these customers need to review their monthly budgets to accommodate the increase and overall cost of living.
The discussion focuses on the impact of the recent 15% increase in electricity tariffs on SA households, how the pandemic has affected consumer spending in SA, with people leaning more on credit to finance day-to-day expenses, and the growth of the gig economy as families and individuals look to supplement their incomes.
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• Business Day Spotlight is a MultimediaLIVE production.
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