Eskom will confirm on Tuesday that it is dropping its price hike proposal to 35 percent.

Eyewitness News confirmed Eskom's revised tariff application has been lowered from its original request for an annual increase of 45 percent over three years.

The electricity giant submitted its proposal to energy regulator Nersa on Monday.

Eskom officials had always said they needed the massive increases to prevent a repeat of last year?s blackouts but there was massive political pressure on the utility not to go ahead with its original plans after the African National Congress said they were unworkable.

However, these revised hikes would still have a major impact on the economy.