Cape Town, South Africa — ESI-AFRICA.COM — 29 March 2011 – The Cape Town Chamber of Commerce has expressed the opinion that it expects the looming tariff hikes by South African national power utility Eskom Holdings Limited to push down production.
Electricity prices will increase by close to 26% on Friday. The National Energy Regulator (Nersa) approved the power utility’s price increases, staggered over three years.
The Chamber’s Michael Bagraim says consumers will feel the pinch. “The shock is not going to be easy to absorb and it’s going to create a downturn in production. I don’t believe the man on the street is going to be able to swallow such a large increase,” he said.