Kganyago concerned another big power tariff hike will trigger grid defections

South African Reserve Bank governor Lesetja Kganyago has added his voice to a growing chorus of concern that South African businesses, and even high-income households, could defect from the electricity grid in numbers should Eskom prevail in its bid for a 19.9% tariff increase from April 1, 2018. Speaking to editors in Johannesburg, the governor warned that grid defection would not only be negative for Eskom’s financial viability, but could also undermine the sustainability of those municipalities that rely on electricity revenues. The impact could be particularly severe for those large metropolitan councils that were currently tapping the bond markets for funding.