Power price hikes bad for business

Massive electricity tariff hikes are expected to cost businesses a small fortune.

Massive electricity tariff hikes are expected to cost businesses a small fortune.

CAPE TOWN - The Cape Chamber of Commerce on Sunday said locally manufactured products will cost more as massive electricity tariff hikes come into effect.

Consumers who purchase their electricity from the City of Cape Town will pay between 9,9 and 16,9 percent more from 1 July.

However, big consumers such as factories will fork out the most.

The chamber's Gordon Metter said businesses will need to find other ways to cover costs.

"It makes it more difficult to do business. Particularly where there is production concerned and machines used for production, which use electricity. The cost of production goes up."

Metter said businesses will struggle to survive.

"This obviously makes production more expensive; and we become slightly less competitive as a result. So businesses will have to find other ways of cutting back on costs."