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Eskom price hike will hit consumers hard

By unknown | May 19, 2009 | COMMENTS [ 0 ]

Food prices in South Africa have gone up so much that ordinary people are struggling to afford their basic groceries.

Now Eskom wants a 34percent tariff hike, followed by another later in the year. People say electricity is "cheap" in this country, but they do not take into consideration the domino effect this has on other costs. If it costs more for a farmer to harvest crops, more electricity for bakers to bake bread and grocery stores to cover their electrical bills - then the consumer ends up being hit by the increase.

Cabinet was years ago informed by economists that the public could not possibly shoulder this burden.

Ingela Richardson, II


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