Demystifying Tariff Setting: The tariff conundrum – Lower rates now, blackouts later?

27th February 2013

For years, low electricity costs have been a driver behind South Africa’s economic growth and our competitiveness as a nation. Now, sharply rising electricity tariffs are beginning to have a significant impact on our country’s economic sustainability. Based on most of the comments on Eskom’s tariff application given at the NERSA public hearings in January 2013, general consensus seems to be that tariff adjustments should be kept to a minimum.

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Written by Shamal Sivasanker, Leader: Infrastructure & Power and Daryl Elliott, Executive Lead: Strategy & Innovation – Deloitte South Africa