South Africa's state-owned power firm Eskom will be allowed to double electricity prices over three years, drawing outrage from unions but relief from the mining sector where an even bigger hike had been feared.

The power company says the increase is needed to finance its 385 billion rand (36.6 billion euro) scheme to meet the soaring demand for electricity by building new plants and expanding the national grid.

The National Energy Regulator SA (NERSA) agreed to allow three annual increases of roughly 25 percent, beginning in April. Eskom had originally sought increases of 35 percent.

The jumps mean that electricity will cost twice as much in 2012 as it does now.

The ANC's leftist allies were outraged at the decision, with South Africa's main labour federation Cosatu vowing to fight the increases and to push government to carry the cost of the higher prices.
"If no progress is made in these discussions, the federation will not shrink from mobilising its members, and the wider South African public, in strike action and protests in the streets against such a savage attack on our living standards and economic future," Cosatu said in a statement.

source: AFP