Economist Dr. Frederich Kirsten has warned that the increase in electricity prices may affect job security as some small business owners may struggle to keep their businesses afloat.
The National Energy Regulator of South Africa Nersa has officially approved an 8.76 tariff increase for Eskoms direct customers, effective from 1 April.
Municipal customers will face an even larger increase of 9 starting in July. Kirsten says while larger businesses might be able to find alternatives to mitigate the impact, small businesses may struggle to find solutions.
