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Eskom’s price hike will hit jobs, place handbrake on economic growth | Business | M&G

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Critics have warned that Eskom’s above-inflation increase will have detrimental effects on consumers and the economy.

Critics have warned Eskom’s above-inflation increase will have detrimental effects on consumers and the economy.

“This larger increase in electricity prices will eat into the already diminished income of the poor and lower income groups,” said the Democratic Alliance’s member of parliament Natasha Mazzone in a statement. “This announcement by Nersa of double the inflation for this year is going to damage the economy irretrievably. Nobody gets increases double the rate of inflation. Somebody is going to have to start switching off their lights and I suspect it’s going to be half of the South African population because they can no longer afford it,” Blom said.

Eskom already has a court challenge to Nersa’s decision to allow it to claw back only R32,6-million or 4.41% from consumers for the previous three years. This is less than the R66.6-million that Eskom had asked for.

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