Eskom encourgaes debate on proposed tariff hike

Eskom has encourages public debate about its proposed request to hike electricity tariffs.

Eskom's Megawatt Park offices in Sunninghill. Picture: Taurai Maduna/EWN

CAPE TOWN - Eskom has challenged the public to engage with it on its 16 percent proposed tariff hikes over the next five years.

The parastatal has asked the National Energy Regulator of South Africa (Nersa) to consider the application.

If Nersa gives the proposed 16 percent tariff hike the green light, it will more than double the price of electricity over the next six years.

Nersa is expected to make a decision on the proposal in February 2013.

Eskom's Finance Director Paul o' Flaherty was interviewed on the Kieno Kammies Breakfast Show on Tuesday morning.

He said: "We're doing everything we can to make sure we're more efficient and having industrial action on our sites doesn't help it. Our cost of borrowing is just under 10 percent; there you're very subject to market conditions. We're trying the best we can and all we can do is put out the numbers and ask everybody to have a look."

"These are the costs. We have not overstated these costs, we've put in a R30 billion saving programme over the next five years, we still have to identify where we're going to find that.

"We're looking for comments as to what exactly we're going to do as a country. We need an open debate in the country as to what we're going to do."