Treasury will have to pay the rest of the 20.5% electricity tariff increase that Eskom had requested.
This is the assessment of energy expert, Tshepo Kgadima after NERSA approved just over half that increase.
But 9.61% is still more than inflation, which puts South Africans in a precarious position. Kgadima says that once Treasury steps in, it effectively comes out of the public purse.
He says that Eskom is a bottomless pit with a board that is incapable of saving the utility.
Kgadima contends Eskom’s application to the national energy regulator was meant to cover the cost of buying more power that it does not need.
This as independent power producers are expected to come on board to augment the strain on the grid.
Kgadima says that as Eskom continues to burn diesel while fuel prices soar, there’s not much hope for getting out of the energy crisis.
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