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Business Unity SA (BUSA) welcomes the transparent manner in which Eskom has communicated details of their application for tariff increases for the next five years starting April 2013.While BUSA appreciates the need for tariffs to be cost reflective, the quantum and pace of tariff increases need to be carefully managed in order to forestall any negative impacts or shocks to the economy. 

BUSA notes that the application seeks to phase-in the average tariff over a five year period, which would assist in ameliorating potential shocks that would have resulted from a shorter phase-in period.  However, in view of the previous concerns by business on the cumulative impact of administered prices, especially electricity, BUSA will also be critically interrogating the structure and allocation of the tariff increase across the industrial, municipal, and household categories.

It remains essential that decisions on electricity tariffs reflect a well-considered balance of economic performance, global competitiveness and affordability for consumers.