Financial Times FT.com

South Africa backs 60% electricity price hike

By William MacNamara in Johannesburg

Published: March 20 2008 17:48 | Last updated: March 20 2008 17:48

South Africa’s government on Thursday backed a proposal to raise electricity prices by 60 percent in the hope that a reduction in consumer demand will solve a dire power shortage in the country.

The decision is radical for South Africa, because government policy has long held that cheap electricity helps the poor and is an instrument for economic development. South Africans still enjoy some of the cheapest electricity prices in the world.

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