South African Platinum mines are unlikely to pay the planned power tariff hike to Eskom after it was revealed that the firm was unlikely to be able to raise tariffs by a further 53 per cent.

The power regulator is not expected to agree to details which would see electricity tariffs increased by 53 per cent in real terms.

According to reports from Reuters the regulator will block the move this week despite the fact that more blackouts could be on the cards.

Platinum mines have already been hit by power cuts and load shedding and if power tariffs are not increased Eskom said this could continue.

However, speculation from analysts revealed that a partial hike of about 25 per cent added to the 14 per cent already approved could take place.

Dick Kruger from the Chamber of Mines told the news agency that any large increases would not only hit mining firms but also the economy as a whole.

He said: "Trying to force once-off large adjustments on the economy, such as the price increase, will have a detrimental effect on the economy."



Source:

Reuters