‘A price hike too many’

Eskom plan will cost jobs in SMMEs

SMALL businesses fear job losses will be an inevitable consequence should energy regulator Nersa grant Eskom’s 17% electricity price increase.

While not present at this week’s public Eskom regulatory clearing account (RCA) application hearings in Nelson Mandela Bay, SMME owners said they were still reeling from last year’s double-digit rise and the knockon effects of loadshedding that had left a lasting financial hangover.

Now they were just “one or two increases” away from shedding jobs.

The business owners, already struggling to keep up with their overheads, said such a hefty tariff increase – which could come into effect by April – could further cripple business.

Eskom has applied to recover R22.8-billion in additional costs incurred in the 2013-14 financial year with a 16.6% increase – which is 8.6% above the earlier agreed upon rate.

Port Elizabeth’s The Coffee Shop owner Adel Janse van Rensburg spends an average R1 800 a month on electricity, with an increase set to push expenses through the roof.

“Compared with last year, we are spending about R400 more a month on electricity, although we use pretty much the same [number of] units,” Janse van Rensburg said.

“Our overheads are up, but we can’t just put our prices up.

“Last year, we lost a lot of our lunch-time trade – our busiest time – because of load-shedding.

“Now we are being punished for trying to save on power as instructed [through Eskom’s power alerts].