Eskom tariff hikes lead to concerns over negative impact on business

Eskom tariff hikes lead to concerns over negative impact on business

The recent Eskom tariff hike has resulted in concerns that business will be adversely affected.

On Thursday, a 9.41% hike was approved for 2019. Thereafter, there will be an 8.1% increase in 2020 and a 5.2% increase in 2021.

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While many have said that the hikes were unavoidable when considering Eskom's debt problems, others have warned that it will harm the economy, according to Eyewitness News.

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A spokesperson for Business Unity South Africa, for example, said that the increases would force several companies to reconsider their plans for the future.

READ ALSO: Soweto residents refuse to pay Eskom - "ANC promised free electricity"

Additionally, according to some economists, the hikes are likely drive up the prices of many goods and services, because producers will have to pay more for energy.

As with any increase to prices of essential products, the poor are likely to be hardest hit.

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Source: Briefly.co.za

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