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South African power utility Eskom has applied to raise electricity rates by 14,6% per year over five years, a confidential document obtained by Reuters showed on Friday.

Eskom said the increases could be as much as an annual average increase of 19% over the same period, depending on certain government decisions.

Eskom needs to fund an expansion drive and the building of new power plants to keep the lights on in Africa’s largest economy.

Sharply rising power rates have added hugely to the costs of key sectors such as mining in the world’s biggest platinum producer.

Eskom, which provides 95% of the country’s power, was granted three years of 25% power tariff hikes in 2010.

“In the base case Eskom requests revenues totalling 1,07 trillion rand ($128 billion) over the five-year period, which translates into annual average price increases of 14,6%,” Brian Dames, Eskom’s CEO, said in the document marked “strictly confidential”.

But this could climb to 19% if the government brings in a carbon tax or builds new plants beyond those currently under construction, the document says.

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Fri May 24 03:31:13 SAST 2013 ::

Jul 13, 2012

CheeseBoy

after splurging 26 million on parties. this is disgusting!
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Jul 13, 2012

WakeUpSouthAfrica

CheeseBoy - R34 million.
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Jul 13, 2012

Limpopoist

Eskom again they have increased their price for 3 years,NOW the want another 5 yeares

REALLY we are been held hostage here,
it is ESKOM no competitor
Telkom : no competitor as NEOTEL not having enough infrastructure
Transnet etc
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Jul 13, 2012

SOLUTIONS

Need to give zimbabwe free power?

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Jul 13, 2012

KasiKid

You spent R36 million on parties, now you want more money from us...

You are crazy...
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Jul 13, 2012

nomimimntanam

R36 million on parties o not every company make parties no ever ask. go go eskom
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Jul 13, 2012

nomimimntanam

R36 million on parties o not every company make parties no 1 ever ask them. go go eskom
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Jul 13, 2012

CheeseBoy

@WakeUpSouthAfrica

thanks for the correction. even worse!!
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Jul 13, 2012

Tlalisto

I guess we have to start Job hopping. otherwise staying for one company o tlo kreya 0 - 4 % increase while bo Eishkom ba batla 14% + Municipality electricity will take u to 25 % yearly increase electricity.
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Jul 14, 2012

wendyyah

you spend millions on parties but u fail to keep prices on bay.
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