/ 15 January 2010

Call for Eskom to reconsider funding model

Eskom must consider other models of funding besides increasing tariffs, trade union Solidarity said in Rustenburg on Friday.

“If you run a chocolate business you can’t increase the price of chocolate for funding your extensions, you will lose business,” said deputy general secretary Dirk Hermann.

He said South African consumers cannot afford a hike of 35% each year for three years.

“This increase will lead into a rush in unemployment,” he said at a National Energy Regulator of South Africa (Nersa) public hearing into Eskom’s proposed tariff hike.

Nersa should not approve the 35% tariff increase as Eskom could afford a tariff increase of 20% or less provided it controlled the rising coal price, Hermann said.

Eskom has asked for a 35% increase every year for three years to fund its R385-billion expansion plan. — Sapa