Wednesday, December 02, 2009

Mixed reaction to Eskom’s tariff hike

By Ofentse Mokae
02 December 2009


Eskom’s revised tariff proposal has been met with mixed emotions.

Most political parties, trade unions and businesses expressed concerns about its effect on inflation.

Opposition parties rejected the proposed 35 percent tariff increase every year for the next three years despite it being down from the previous proposed 45 percent.

The DA said the proposed tariff hike does little to dampen concerns about possible inflationary effects.

Meanwhile the FFPlus said it was scandalous that Eskom still expects the consumers to pay for their mistakes.

The United Association of SA union said the increase is still too high and Business Unity SA welcomed the decrease.

However it said it was clear that electricity costs are playing a major role in preventing inflation from falling faster.

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