(Adds Eskom comment)
CAPE TOWN, July 13 (Reuters) – South African power utility
Eskom may apply to raise electricity rates by as much
as 19 percent a year on average over five years, a confidential
document obtained by Reuters showed on Friday.
Eskom said in a statement it had yet to finalise the
application it will submit to the national energy regulator for
the rate hikes to take effect from April of next year.
In the document obtained by Reuters, Eskom said it could
seek increases of at least 14.6 percent a year on average over
the period and possibly as much as 19 percent, depending on
certain government decisions.
Eskom needs to fund an expansion drive and build 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, one of the world’s lowest-cost electricity producers,
which provides 95 percent of the country’s power, was granted
three years of 25 percent 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 percent,”
Brian Dames, Eskom’s CEO, said in the document marked “strictly
confidential”.
Continued…
