Price discrimination eskom
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Explanation:
Electricity parastatal Eskom is guilty of price discrimination, economist Mike Schussler said on Friday.
He was addressing a conference hosted by the National Consumer Forum in Midrand.Schussler said the residential sector always bore the brunt of tariff increases, therefore subsidising industry.
“It’s wrong to say we have the lowest electricity rates in the world,” he said.
“Our industries might have, but not the residential sector—especially if Eskom gets its 34% tariff hike.“In fact, if Eskom does get the hike it wants, the prices for the ordinary consumer would have quadrupled between 1996 and 2009.”
Many people did not pay for electricity, he said, “so that’s why the middle class is paying extra—so it’s not just industry we’re subsidising”.