Eskom will announce its decision on whether to hike power prices 19.9%, or goodbye industry

Eskom will announce its decision on Dec. 13 on its plan to raise the power price by 19.5% next fiscal year, according to NERSA. Eskom rejected pleas that the hike be in line with the consumer price index, saying that such as small increase made the utility not sustainable and needed the almost 20% increase to stay afloat.

“Eskom is not financially sustainable with a CPI price increase as this would imply an average price increase of 4%,” Eskom’s acting finance chief Calib Cassim.

Needless to say, a 19.5% increase would doom many smelters and result in even a great drop in usage and higher per unit costs to the remaining consumers.

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