Eskom's tariff hike 'unjustifiable'
A National Planning advisor says govt needs a more appropriate price path for Eskom's tariff hike.
CAPE TOWN -An advisor to the National Planning Commission said on Wednesday Eskom's application for an annual electricity tariff hike for the next five years is no longer justifiable.
The National Energy Regulator of South Africa (Nersa) is currently holding public hearings across the country to gauge sentiments around the power utility's latest request for a 16 percent yearly increase over the next five years.
Since 2007 the price of power has increased by more than 300 percent.
Professor Anton Eberhard said government needs to help the regulator in finding a more appropriate electricity price path.
"That's the price path that enables us to be competitive, but it's also a price cost that meets Eskom's operating costs. It needs to be a levelised cost which should try to smooth out some of these big price spikes that we've been having as well."
PUBLIC HEARING DATES AND VENUES:
Mpumalanga - Orion Hotel, Nelspruit.
Limpopo - Jack Botes Hall, Polokwane.
30 and 31 January:
Gauteng - Gallagher Convention Centre, Midrand.
All the hearings will begin at 8:30am and close at 5pm.
For more details, contact: 012 401 4715/4033.