adminaverage monthly 9,6 percent tariff increase, with mining companies among the hardest affected.
According to the South African Chamber of Mines, an electricity tariff rise of only 1 percent has a devastating impact on the mining industry as it amounts to an increased expenditure of R100 million per year. Industry insiders have warned that the tariff increase could lead to 250 000 job losses in the mining sector.
Nicolette Pombo-Van Zyl, programme manager of the Large Power User Programme at next month’s African Utility Week, industries are wary of the tariff increases.
“The proverbial axe is falling on ‘business as usual’ as every industry from mining to manufacturing to retail, is cringing at the thought of rising energy tariffs and commencement of a carbon tax on January 1, 2015.
“On the receiving end of tariff hikes, industry is dealing with the cost of electricity, uncertainty around sufficient electricity supply and carbon emission management,” she said.
According to Dick Kruger, techno-economic adviser to the South African Chamber of Mines, gold mines will be hit hardest.
“About 60 percent of the total cost of the electricity consumption at gold mines goes towards creating an environment that one can work in.” — CAJ News.
Online Reporter