Question 11 Marks:20) Please read the following case study and answer the questions that follow. According to a report by News24 on 1 August 2014 An additional increase in electricity tariffs on top of the 8% already granted to Eskom is unlikely to aid economic growth, said Muneera Salie, industry analyst for energy and environment at Frost & Sullivan Africa Commenting on the National Energy Regulator of SA (Nersa's) announcement on Wednesday that it has approved an additional electricity tariff increase of between 2 to 5 percentage points for next year, she said tariff adjustments play a large part in the sustainability of the economy. However, cash-strapped consumers and businesses will suffer, with many companies already taking drastic measures stay afloat. Eskom has increased tariffs by 8% over the past two years. Nersa authorised Eskom to recover an additional R7.8bn in revenue from its customers from next April. This is less than the R18.3bn Eskom asked for as tighter cost controls are still pushed by Nersa. Nersa stated that the additional tariff hikes have been granted to compensate for variances in the coal price, lower than expected sales revenue during 2010-2013, and differences in the actual inflation rate as opposed to that which was assumed when the original tariff of 8% was determined. Q.1.1 (16) Critically discuss the decision-making process that ESKOM should have followed to submit such a request to Nersa. Q.1.2 Explain why you are of the opinion that they were successful or failed in this process