Cabinet Approves Electricity Pricing Policy

In a move to bring certainty and predictability to electricity pricing, the cabinet has approved the electricity pricing policy.

The cabinet points out that the objectives of the policy include setting a clear framework on the determination of electricity prices, ensuring cost-reflective tariffs while protecting the poor, creating certainty and predictability and ensuring long-term sustainability of the electricity industry.

On the other hand, Eskom has warned that the global financial turmoil had prompted it to review its application for the next round of electricity tariff increases. Eskom spokesperson, Fani Zulu, argues that the negative developments in international financial markets had necessitated that the company review its assumptions that underpin the tariff application.

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