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ANC welcomes NERSA determinations

18 June 2008

The African National Congress welcomes the determination of the National Energy Regulator of South Africa (NERSA) on Eskom`s application for additional tariff increases.

The decision to approve a total increase of 27.5% for the coming year represents a vast improvement on the increase Eskom requested. This is consistent with the ANC`s proposal for price increases to be smoothed out over five years.

The NERSA decision will limit the negative impact of the increase on consumers and the economy, while ensuring that the country will be able to meet its growing energy needs.

The ANC welcomes in particular the regulator`s determination that the additional tariff increase not be applied in respect of poor households.

The ANC commends NERSA, government and the social partners in NEDLAC for the constructive manner in which they have approached these proposed tariff increases. This demonstrates the value of meaningful social engagement as a means to achieve sustainable and workable solutions to the challenges facing the country.

Issued by:
Jessie Duarte
African National Congress

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