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Eskom has requested a 16% per year electricity tariff increase per year for each of the next five years, which means that if granted, electricity prices will double.
This effectively amounts to a tax increase, resulting from poor management of publicly owned resources. Electricity tariffs now have to rise to pay for the bungles made by the Nationalist and ANC administrations in the past few decades.
While the private sector strives to provide better quality products and services at lower prices, government strives to provide worse quality products and services at higher prices. Look around you, the evidence is everywhere.
A major reallocation of capital into these government managed areas will be required that will be a huge drain on the private sector and the overall economy.