House Chairperson, the DA welcomes the statement made by the National Energy Regulator that it has cut the increase in electricity rates for power utility Eskom to 16% for the 2012-2013 financial year, from the previously approved hike of 25,9%. This increase remains substantially higher than the current inflation rate and will put pressure on economic growth prospects and our ability to generate much- needed jobs for the millions of unemployed South Africans.
As a result of this move, the average standard price of electricity will next month increase to 60,66 cents per kilowatt hour instead of 65,85 cents per kilowatt hour. Price hikes hurt the consumer significantly and could result in the effective slowdown of our economy. This reduction in tariff will be a relief for electricity users, none more so than for the millions and millions of South Africans living in abject poverty.
We further welcome the statement by the Minister of Public Enterprises, Minister Gigaba, that in order to obtain greater predictability in the move to cost-reflective tariffs, Eskom would propose a longer period than the standard three years for the next round of electricity price increases. [Applause.]