Eskom plans hiking tariffs

Treasury officials say the utility's finances are healthy enough for it to raise the R150bn to expand capacity 60 percent in the next five years on its own, through a combination of electricity price hikes and bond issues.

But if Eskom gets the go-ahead from the National Energy Regulator of SA (Nersa) to raise its tariffs 18 percent in fiscal 2008- 09 and another 17 percent the following year, it will further cloud SA's deteriorating inflation outlook, adding to pressure for higher interest rates.