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Major cities in South Africa oppose electricity price hikes

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South Africa

Opposition is growing in South Africa against the latest plan to increase prices of electricity in the country.

National power utility company Eskom has announced plans to increase charges by almost 21%. The increase is more than three times the current inflation rate.

The plans have been publicly opposed by Cape Town and Johannesburg, both cities led by mayors from the Democratic Alliance, South Africa’s biggest opposition party.

Eskom defends the move arguing that the increase is necessary to service the debt of US$26 billion dollars as well maintain the infrastructure.

Local authorities in Johannesburg have lodged an objection against Eskom's plan with the National Energy Regulator.

The organisation is also under fire from an organisation fighting tax abuse that accuses it of "blackmailing South Africans".

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