HomeIndustry SectorsFinance and PolicyTariff increases will affect water prices

Tariff increases will affect water prices

21 November 2007 – Eskom’s proposed 18 percent tariff increase will affect the price of water, says Ray Moodley of Durban’s Umgeni Water.

"Electricity is one of the primary drivers in the process of purifying water.

"The rise in electricity prices will affect water prices and therefore affect the poor who are already finding the cost of living hard. Water is a necessity which no one can live without, and one should consider what will happen to them," Moodley said, speaking at a public hearing in Durban earlier in the week.

He continued that the government should have planned sufficiently for the growth in electricity demand for which Eskom wanted to raise support by the tariff increases.

NERSA’s Mbulelo Ncetezo, said a price adjustment would be allowed in 2008 and 2009, dependent on independent verification of Eskom’s financial projections.

The regulators decision will be published in December 2007.