Fears of above-inflation electricity tariff increases

Consumers could be faced with above-inflation electricity tariff increases after Eskom applied for price hikes set at inflation plus two percent. At the first round of public hearings into the proposed tariff increases for the next three years, hosted by the National Energy Regulator, Eskom CEO Thulani Gcabashe explained that the power utility had to balance the need for affordable and predictable tariffs with Eskom's planned 84-billion rands, five-year capital expenditure programme. But Engineering News reports that the South African Local Government Association vehemently opposed the plans, saying above-inflation increases would restrict municipalities’ ability to meet their objectives and have a negative influence on South Africans’ living standards.