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<\/a><\/p>\nThe utility argues that the law provides for tariff adjustments to account for variances in sales and costs, and that keeping electricity costs artificially low won\u2019t solve the nation\u2019s broader economic problems.<\/p>\n
\u201cEskom is asking for nothing more than an efficient cost,\u201d Hasha Tlhotlhalemaje, general manager for regulation, said at the hearings. \u201cWe understand that there are questions about the impact of governance failures at Eskom,\u201d and these are being addressed, she said.<\/p>\n
Sibanye-Stillwater Ltd, the world\u2019s biggest platinum producer, told the regulator that rising energy prices were undermining the entire mining industry, while municipalities that buy power from Eskom and sell it on to residents and businesses complained that the utility was hampering commerce and industry.<\/p>\n
Several other presenters warned that Eskom\u2019s death spiral – whereby its electricity sales continue to decline as customers switch to alternative supply — will persist unless it curbs price increases.<\/p>\n
Lower demand is concerning and is partly attributed to higher prices, with low levels of economic growth and a slump in demand for some commodities also playing a role, Eskom said in an emailed response to questions. Power prices are affected by high labor and logistic costs, and environmental legislation, and an integrated approach is needed to contain them, it said.<\/p>\n