The Ministry of Finance of South Africa has announced a series of financial measures in a context of tense power supply. The Treasury expects power disruptions to continue for three years as technical problems at the Majuba coal-fired power plant (five of six 600 MW units idled) and at the 900 MW Koeberg nuclear power plant add to delays in the commissioning of the 4.8 GW Medupi and the 4.8 GW Kushile coal-fired power plants (to be commissioned between 2015 and 2018). The South African government plans to inject R23bn (US$2bn) in three tranches in state-owned power utility Eskom, with the first capital injection expected in June 2015. The money would be raised from the sale of non-strategic assets and surplus cash balances in public companies.
In addition, the Ministry of Finance will increase levies on fuel and electricity and the personal income tax to raise revenues. The total fuel levy will be raised by R80.5c/l on 1 April 2015, while the electricity levy will be raised from R3.5c/kWh to R5.5c/kWh; this temporary increase in the electricity levy will be withdrawn when the power shortage is over. It is expected to promote energy efficiency and to encourage lower greenhouse gas emissions. A carbon tax could be introduced in 2016.
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