Eskom has been pressing the National Energy Regulator of SA (Nersa) for a 16 per cent annual hike in electricity prices, but it could be lowered to 10.8 per cent and still be costs-reflective, according to Business Unity SA (Busa).

Revealing a research commissioned by it, Busa claimed that it was possible to achieve an accelerative price path at a lower rate without posing any negative impact on supply security.

In October, Eskom applied to Nersa for a 16 per cent hike in electricity prices per annum for the next five years.

The organization warned that any such move would pose considerable adverse impacts to various sectors of the economy.

Arguing against Eskom's requested electricity price hikes, Busa said, "Mining, minerals, and chemicals are heavily reliant on electricity. These sectors often are highly trade-exposed and would seem to have limited ability to absorb the substantial increases in real electricity tariffs."

If Nersa approved the proposed electricity tariff hike, then it would adversely affect on various sectors' output, employment as well as investment decisions. Other less power-intensive sectors would feel the heat of the price hikes, which would create a ripple effect all through the economy.