Consumers and businesses across South Africa are holding their breath in fearful anticipation of June 29, 2015, when the National Energy Regulator (Nersa) will announce whether or not it has approved Eskom’s application for a shocking 25.3%. electricity tariff hike.
A debt expert has warned that the approval of this electricity tariff hike will prove catastrophic to indebted consumers and businesses, plunging them into irreversible over-indebtedness and triggering an onslaught of bankruptcies.
Electricity Tariff Hike Will Cut Consumers Twice as Deep
The aftermath of the 25.3% increase will burden consumers directly and indirectly. For example, not only will your cash flow suffer, when it comes to household electricity costs, but individuals will also have to endure excessively high prices for goods and services.
It goes without saying that industry in general requires an immense supply of power, thus production costs will undoubtedly skyrocket. Consequently, the fast-growing middle class of South Africa will likely be driven back into poverty.
Reason for Electricity Tariff Hike Adds Salt to Wound
From the perspective of a top economist, all this devastation could be avoided if Eskom addressed the inefficiencies within their organisation. Instead, consumers are having to pay for the utility’s senseless decision making, appalling management and incompetent leadership – making the bitter pill of a tariff hike all the more unbearable to swallow.
Only the Pro-active Thrive
Budgeting and paying off your debts have never been more crucial, not only as a way of maintaining the lifestyle you are accustomed to, but more as a matter of basic survival. Get pro-active about your financial security and contact NDA today to pave your way to becoming completely debt free, before the tariff hike strikes again.