Power hike ‘will lead to job losses’ | Daily News

Electricity was a significant expense for many businesses, being second to labour cost, she said.

“The additional cost has to be accommodated somewhere else and since it cannot be passed on to customers in pricing because that would just render us uncompetitive, it must be accommodated by shedding labour costs.”

Eskom wants its clients to pay an average of more than 9% more for electricity from April 1 next year and proposed that municipalities pay 27% more for bulk electricity purchases from July next year.

The PCB said it represented about 800 members from all sectors and said that Eskom’s staff costs had increased by 46% over the last decade relative to a reduction in sales.

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Power hike ‘will lead to job losses’ | Daily News.