Rather than the 17% increase in electricity tariffs requested by Eskom, the National Energy Regulator of South Africa (NERSA) recently approved tariff increases of 9,4% for 2019, 8,1% for 2020, and 5,2% for 2021.
According to Annabel Bishop, the chief economist at Investec, the inflation rate is likely to increase from the second quarter this year, and these increases, along with higher Brent Crude oil prices, will exacerbate inflation figures.
“Electricity tariff increases have a meaningful impact on inflation, with a weighting of 3,8% in the consumer price index for electricity prices,” Bishop said.
The South African Reserve Bank has flagged administered prices such as electricity and water tariffs, rising domestic food prices, changing investor sentiment towards emerging markets, moderation in global economic growth, and volatile international oil prices as…
