S.Africa approves electricity rate increases of about 25 percent for each of the next 3 years

Hefty electricity rate hikes for South Africa

JOHANNESBURG — South African regulators have approved electricity rate increases of about 25 percent for each of the next three years.

The National Energy Regulator said Tuesday the increases will start April 1. The hefty increases are raising concerns about the impact on business and homeowners. But they are less than the 35 percent annual increases electricity company Eskom requested.

Eskom blamed widespread power cuts in 2008 on years of under-investment and rising demand. Gold and platinum production — the backbone of the national economy — were interrupted because of lack of power.

In a statement Tuesday, mining companies said the increases would hurt, but would “be much more manageable and cause much less damage” than the increases Eskom requested.