Sifile yi-Eskom | Under-pressure entrepreneurs can't absorb any further costs
Small businesses that are already facing serious financial pressures due to the pandemic have described the electricity increase that comes into effect in April as "a squeeze of the little life they have left in their operations".
On Tuesday, the North Gauteng High Court in Pretoria granted Eskom an order which allows the power utility to increase electricity prices by 15.63% on April 1.
Energy expert Ted Blom has warned that the Eskom electricity hike will further restrain the economy recovery and lead to more job losses, as has happened in the past.
He said the country lost millions of jobs during the Covid-19 pandemic and the 15.63% hike, coming into effect on April 1, would make things worse as large companies could reconsider keeping their businesses in SA due to the dwindling economy.
Residents in Soweto say the 15.63% electricity tariff increase will cripple them.
The National Energy Regulator of SA (Nersa) was this week ordered by the North Gauteng High Court in Pretoria to allow Eskom to recover R10bn in allowable revenue from consumers in the 2021/2022 financial year, throwing ordinary citizens into turmoil.
Snake Park residents told Sowetan that the increase will deter them from paying for electricity.