Electricity increases 1 July

[Prepay Guru]

National Treasury is now advising as follows:

Eskom bulk tariff increases: National Treasury now advises
municipalities to budget for a 34 per cent increase in bulk
electricity tariffs when preparing their budgets for the 2009/10
financial year. The earlier warning contained in Circular No 48 to the
effect that this recommendation `.. is not intended to in any way pre-
empt NERSA's ruling on the 2009/10 tariff increase’ has been repeated.
National Treasury has however requested that NERSA table a revised
electricity pricing structure before 1 June 2009, at the very latest.

The difference between the 25 per cent real increase quoted in the
circular and the annexure and the latest figure of 34 per cent nominal
increase is the result of allowing for inflation. This understanding
has been confirmed during a discussion with National Treasury on 1
April 2009.

The Annexure is available under the "Files" section of the group.

Regards,
Jacques