Eskom, the state-owned power utility, has been granted a massive 31.3% increase in power tariffs, with further increase on the way.

The National Energy Regulator of SA (NERSA) granted the increase, which also includes an environmental levy, with the warning that further tariff increases would also happen in the future.

The news marked a tough day for consumers yesterday, as the Reserve Bank also announced it was not cutting interest rates as expected, and was leaving tem on hold at 7.50%.

The increase granted by NERSA was originally requested by Eskom in May, when it submitted its delayed application, and was marginally less than the 34% Eskom originally asked for.

The increase will take effect from July 1, 2009, to March 31, 2010.