Eskom's proposed tariff hike could cripple the mining sector
The Chamber of Mines says a further electricity tariff hike could result in thousands of job losses.
JOHANNESBURG - The Chamber of Mines says a further electricity tariff hike will put the mining sector under threat and could result in thousands of job losses.
Business will continue presenting arguments today at public hearings in Midrand into Eskom's application for a 16.6 percent increase.
The utility says it needs to recover R22.8 billion, some of which was spent to buy diesel to operate open cycle gas turbines, to avoid load shedding.
The Chamber of Mines' Charmane Russel says they anticipate that at least 40,000 jobs could be lost if electricity prices go up.
"We could see as many as 20,000 jobs being lost in the gold sector and another 20,000 jobs being lost in the platinum sector. It would out more mines under threat."
Eskom says it incurred high costs in order to avoid load shedding, which would have had a far greater impact on the economy.
Businesses like AfriBusiness, says the National Energy Regulator of South Africa (Nersa) must consider whether consumers are able to pay more for Eskom's inefficiencies.