Debt Rescue cautions against electricity tariff hikes

Debt Rescue's Neil Roets warns consumers are in for a bumpy ride.

Eskom's Arnot Power Station in Mpumalanga. Picture: Supplied.

JOHANNESBURG - Debt Rescue is warning electricity tariff hikes approved for next year will have devastating consequences for the country's indebted consumers.

Last week the National Energy Regulator announced that the price of electricity will increase by 13 percent next year.

The organisation says the total consumer debt is now over R1.4 trillion and the debt to income ratio is hovering around the 75 percent mark.

Debt Rescue's Neil Roets has warned that consumers are in for a bumpy ride given petrol price increases, which cause the price of other goods to increase, in addition to the upcoming power price hikes.