Power tariffs to double in S. Africa

Published December 3, 2008

JOHANNESBURG, Dec 2: Electricity tariffs in South Africa will double within three years, the government said on Tuesday, urging consumers to use less power as the country grapples with a crippling energy shortage.

“Everyone should be aware that electricity prices will at least double in the next two or three years, which is unavoidable to pay for the new investment programme,” said a statement from President Kgalema Motlanthe’s office.

The government has already approved a 27 per cent hike in electricity tariff this year.

The announcement came at the start of a government programme to encourage South Africans to cut down on their power use, as the state-run utility Eskom prepares for its annual maintenance in January.

Last January, the country suffered widespread blackouts that forced Eskom to ration power and shut down the key mining industry for a week.

“We must act together to reduce our unnecessary and inefficient use of energy,” deputy president Baleka Mbete said at the launch of the campaign.

“We have to raise tariffs substantially” to pay for upgrades to the power system, Mbete added.

Households account for more than a third of all electricity usage. The government says if homes adopted energy-saving measures, South Africa could reduce its electricity needs by 19.5 per cent.

Eskom has launched an ambitious scheme to spend 343 billion rands ($37.2 billion) over the next five years to build new power plants and expand the transmission lines.—AFP

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