Eskom to apply for another tariff hike

Eskom say consumers have for long been paying too little for electricity.

Eskom.

JOHANNESBURG - Consumers will know this week if electricity prices will be hiked as Eskom applies for a new tariff.

Eskom is expected to apply for an increase at the National Energy Regulator.

The power utility said the increase will enable it to pay for its new power stations.

Eskom's Hillary Joffe said they will apply for a higher tariff because South Africans have generally been paying too little for their electricity.

"For many years, as long as three decades, electricity prices were well below the cost of inflation."

But economist Mike Schussler said, "There is just no way that we can keep on increasing it."

Schussler argues that it's inconceivable for a country that produces coal and has its own power station to also have among the highest rates for electricity in the world.