Palapye.com News Blog

source: allAfrica
Business Day (Johannesburg)

16 May 2008
Posted to the web 16 May 2008

Linda Ensor
Cape Town

On the eve of a top-level summit today called to deal with SA’s electricity crisis, power utility Eskom appears to have lost support even from the government in its plea for an immediate and drastic 53% hike in electricity tariffs.

Instead, the government has shifted towards supporting a cash injection for the utility to permit five years of smaller, incremental hikes.

The emerging consensus between the government, business, labour and the African National Congress and its allies — that a sudden price shock would deliver irreparable harm to the economy and add significantly to inflation and interest rates — crystallises a groundswell of opposition to Eskom’s perceived high-handedness.

Though the final decision on the price hikes ultimately rests with the [continue reading]