Nersa to announce tariff increase on Wednesday
By Ilhaam Hoosain
17 June 2008
National Energy Regulator of South Africa (Nersa) decision over Eskom's tariffs will be announced on Wednesday and consumers, investors and the Reserve Bank will watching closely.
The power utility applied to have its tariffs increased by 53%.
Meanwhile at recent public hearings the ANC, the Reserve Bank and trade unions were among the interested parties who rejected such a large increase this is according to the SABC.
Reserve Bank governor Tito Mboweni insists that a 6% rise in electricity tariffs would be reasonable and anything above that would stoke inflation.
Eskom need to raise electricity tariffs to fund its R350 billion expansion project. But analysts have warned that any sharp increase could trigger off a spate of rises, including a lending rate increase before the Reserve Bank's scheduled meeting in August.