Business Day Live – ESKOM’S request for an additional electricity tariff increase on Tuesday got unexpected support from the International Monetary Fund (IMF), which said the hike was necessary to make the utility financially sustainable.
The global lender warned that power outages were the biggest obstacle to SA’s economic growth and suggested strict conditions for the tariff hike.
“Higher electricity tariffs and the envisaged government support are necessary to make Eskom financially sustainable, but should be complemented by cost containment, including through improved procurement, efficiency enhancements, and governance improvements to minimise the impact on consumers and business costs,” the IMF said.
