* Power rate cut from original hike of 25.9 pct
* Eskom asked by govt to reduce hikes to protect consumers
* Lower tariff hike not to affect electricity supply
(Adds details, Eskom, minister, analyst comments)
By Agnieszka Flak
JOHANNESBURG, March 9 (Reuters) – South Africa’s
energy regulator said on Friday it had cut the increase in
electricity rates for power utility Eskom to 16 percent for the
2012/13 financial year from a previously approved 25.9 percent
to protect industry and other consumers.
The decision follows Eskom’s bid to reduce the hike after
the government had urged the utility to ease up on private and
industrial consumers hit with soaring power costs.
“This is done without compromising Eskom’s ability to keep
the lights on whilst maintaining its financial capability,”
Minister of Public Enterprises Malusi Gigaba told journalists.
Eskom has been struggling to raise money it needs to build
power plants fast to avoid a repeat of a crisis that forced
mines to shut for days in 2008 and cost Africa’s biggest economy
billions of dollars in lost output.
Eskom has since secured all the funding it needs.
Continued…
