Eskom’s proposed 15% hike sparks fury
With interest rates at record 30 year lows and a world wide recession, Eskom and Government should be told to take a hike literally.Ross said the proposed 14.6 percent price hike was triple the rate of inflation that the Reserve Bank worked hard to contain. On the back of tariff increases of 24.8 percent, 25.2 percent and 16.09 percent over the past three years
I notice that electricity is charged on a sliding scale like water now, never used to be the case. I suspect this was intended to help the poor people who use very little, but the paying public have been stretched to the limit and that is not right.
I don't know of any business that can fund Capital Expenditure through increased tariffs upfront.
It is like me adding another branch to my business, but raising the prices of my stock first so that my customers pay for it. In most cases Capital Expenditure is funded through long term loans, only in South Africa does Eskom get away with the pay now, you will receive later ideology. Not fair on a developing economy that needs electricity to expand.