JOHANNESBURG - The Midrand Local Economic Empowerment Group said the latest electricity tariff increase would have a negative impact on small and medium enterprises , which could see some establishments closing down.
Energy regulator Nersa has received widespread criticism for granting Eskom a more than 18% electricity price hike for the 2023/24 financial year, effective from 1 April. The group's secretary general, Lisa Tele said Nersa did not consider SMMEs who are already battling rolling power cuts.Tele said the increase should have been rolled out in phases.
"The hike that is coming will add operational costs for small businesses. So it has got a lot of impact, some of the businesses end up closing down or even retrenching employees as a cost-containing measure."Tele said the tariff hike will add to the operational costs of small businesses. "So, as a cost-containing measure, some of the businesses end up either retrenching staff or closing down altogether," Tele added.
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