EDITORIAL: This Eskom hike will fry the economy
Even if it gets only half the 40% increase it wants, most consumers will take a huge knock
28 August 2024 - 06:00
The FM is not sure what is more eye-watering: the fact that Eskom is daring to ask for an effective 40% electricity tariff increase for 2025 or that the energy regulator, Nersa, will entertain it using the same methodology that has allowed it to grant collective price hikes of more than 400% since 2010.
These increases have wiped out one of South Africa’s few competitive advantages, that of producing relatively cheap energy, and have contributed to the post-pandemic cost of living crisis that has forced many consumers into debt distress...
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