- 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.
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