Big power users call for inflation-linked tariff ‘compact’ and industry review

The Energy Intensive Users Group (EIUG) has called for an electricity price compact that sustains tariff increases as close to consumer price inflation as possible for the coming five years. The proposal is made in a precursor to the EIUG’s official response to Eskom’s latest revenue application, which will be adjudicated by the regulator in the coming months. The EUIG’s mining and industrial member companies collectively constitute 40% of Eskom’s yearly sales and account for just over 20% of the country’s gross domestic product. In 2017, the companies directly employed over 650 000 people in South Africa.