- Eskom feels it is entitled to a tariff increase of 90% to compensate for financial losses
- The power utility says it will be merciful on South Africans and raise tariffs with 15% annually instead of 90% at one time
- The price of electricity will also be raised by 4% in April 2019
South Africa's suffering power utility Eskom says it's entitled to a tariff increase of 90% but will show South Africans mercy and settle for less.
According to the power utility, it needs to increase the tariff by 90% to compensate for financial losses.
Eskom recently announced that the electricity tariff will be raised by 4% in 2019 after Nersa approved it. But apparently, that's not enough.
The South African reports that Eskom said it will have to increase electricity costs by at least 10-fold to make up for a sales overestimate of R118 billion.
Eskom will spare South Africans a big increase and said it will push up electricity tariffs by 15% every year.
However, Energy analyst Ted Blom says Eskom's figures are flawed and fear the utility is still captured - and not by the Guptas.
Blom fears there is corruptive maladministration at Eskom. He added that if the power utility cut jobs, it could save South Africans about 50% on electricity tariffs.
Do you have news that might interest us? Message us on our Facebook page and we could feature your story.
Need to be cheered up? Watch the Animated Joke: When Heaven becomes a crowded place…and take a look at what else is happening on Briefly South Africa's YouTube channel.
To stay up to date with the latest news, download our news app on Google Play or iTunes today.