Chairperson and hon members, yes, government is considering the introduction of a number of mechanisms that will ensure that tariffs do not escalate in a manner that has an adverse impact on economic growth and job creation. An interdepartmental team has been established to consider the best approach for determining the next round of electricity tariff increases for Eskom, due to take effect from the beginning of April 2013.
This involves developing a model that seeks to balance the socioeconomic impact of increasing electricity prices, the country's competitiveness, Eskom's financial viability and the necessary policy considerations for implementing the integrated resource plan. The future price path will take into cognisance the competitiveness of the South African economy, based on economically sustainable electricity tariffs that balance macroeconomic and sociopolitical impacts.
It is important that the price path provides the regulatory certainty that is crucial for investment in the power sector. Once the price path has been outlined, there will be certainty for the next 20 years regarding future electricity tariffs, as opposed to the current practice, which determines tariffs every three years. Further details in this regard can be obtained from the Minister of Energy. I thank you for your attention.