Business Report 23 October 2012.
Johannesburg – The National Energy Regulator of SA (Nersa) must reject Eskom’s request for an electricity price increase of more than 50 percent over the next five years, the DA and Cope said on Monday.
“By rejecting Eskom’s ludicrous 16 percent a year increase, Nersa will be sparing millions of South African households…,” Congress of the People spokeswoman Beryl Ferguson said in a statement.
Eskom applied to Nersa on Friday for a 16 percent increase in electricity prices each year for the next five years…
(Editor’s note: I wonder how the DA and Cope think Medupi and Kusile are going to be funded, if not through electricity revenue? We appear to be stuck with these projects, in spite of stringent attempts to prevent them. The revenue can either come from the electricity sales or directly from the government. Either way, the tax payer pays. Surely it is better to have cost-reflective electricity tariffs so that we use the power sensibly, rather than to have artificially subsidised tariffs? We can look after the poor with inclined block tariffs, a Basic Income Grant plus Free Basic Electricity.)