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Eskom: Price hike a 'watershed'
19/06/2008 16:15 - (SA)

Eskom: Power cuts likely Platinum hovers near highs Eskom 'viable' after price hike

Johannesburg - Nersa's decision to grant Eskom a 27.5 percent tariff increase is a "watershed" moment, the power utility said in Midrand on Thursday.

"It is bold, courageous and it's very responsible," said Eskom chief executive Jacob Maroga.

Maroga said the decision gave a clear message about where the energy regulator believed tariffs should go in the future.

In particular the regulator's acknowledgement, if current assumptions remained, that a 20% to 25% tariff increase could be on the cards in the next three years was welcomed by Maroga.

On not getting the requested 53% increase, Maroga said: "It's not about a single number".

What was more important was to see that the regulator could be flexible and proactive about variations in the situation.

Eskom would be spending R343 billion over the next five years and about R1.3 trillion by 2025 in capital expansion programmes, said Maroga.

- Sapa