IMF supports electricity tariff hikes

The International Monetary Fund (IMF) has added its support to the push for higher electricity tariffs to make Eskom financially sustainable. “But this should be complemented by cost containment (including through improved procurement practices), efficiency enhancements, and governance improvements to minimise the impact on consumers and business costs,” said an IMF spokesperson. He added that at the same time consideration should be given to further private participation to increase capacity and reduce the cost of generation. “Addressing other infrastructure bottlenecks, for example in transport, is important; the planned rail expansion is a step in the right direction,” he said.