Eskom to hike power tariffs by 24 percent

source: Mmegi

In a development that could push power tariffs in Botswana upwards, the National Energy Regulator of South Africa (Nersa) has approved an Eskom power tariff increase of 24,8 percent as from April 1, 2010, and subsequent increase of 25,8 percent and 25,9 percent for 2011/2012 and 2012/2013 respectively, chairperson Cecilia Khuzwayo announced on Wednesday.

Botswana imports 80 percent of its power needs mainly from Eskom.In November last year, South Africa’s State-owned power utility Eskom applied for increases of 35 percent a year over the three-year MYPD2 timeframe, having initially requested yearly increases of 45 percent, which it said were necessary to help it cover rising operational and capital costs.

The electricity price will rise to 41,5 c/kWh this year, to 52 c/kWh in 2011/2012 and to over 65 c/kwh in 2012/2013. The increase, which will be wildly unpopular, will add to inflationary pressures and could limit economic growth and job creation.

Nersa has calcated the impact on inflation as being less than 1,5 percent a year over the three-year period. The regulator based its [continue reading]

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