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Public Enterprises Minister Malusi Gigaba says the 16% electricity tariff hike every year for the next five years is unavoidable.
Speaking at a business breakfast in Johannesburg, Gigaba said the tarrif increase was not fair but was necessary.
He said South Africans need to bare the collective pain to fund the build programme at Eskom.
He said the poor needed to continue to be shielded and would be charged a single-digit flat rate determined by municipalities.
Gigaba said Eskom had asked municipalities to be considerate of their mark-up when charging more for electricity, as it was a source of revenue.
