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The National Energy Regulator of South Africa (Nersa) on Wednesday announced its had approved a 24.8 percent increase in power tariffs with effect from April 1. Nersa approved a 25.8 percent increase in power tariffs on April 1, 2011 and a futher 25.9 percent increase in power tariffs on April 1, 2012. Compared with today's power prices, the increases in total will result in a close on doubling of energy prices by April 2012. The state owned power utility has applied for an increase of 35 percent every year for three years to help raise funds for a R385 billion power expansion programme. Prior to this application, it had demanded an annual 45 percent hike over the next three years, but reviewed it after protests from major mining companies. Last year Eskom increased its tariffs by 31 percent. The announcement follows a round of public hearings on the matter. To view the statement issued by Nersa regarding its decision, click here to download the full document http://docs.iol.co.za/Nersadecision |
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