Facing a rising energy bill from the South African power utility, GlaxoSmithKline is threatening to relocate its facilities to somewhere where costs are lower.

Public hearings are now underway to consider whether the South African energy regulatory agency should approve the request made by state-owned Eskom Holdings Ltd. to increase electricity prices by 35% a year over the next three years.

Such a move would raise production costs at GSK’s Cape Town plant by more than 2%, Glaxo’s head of engineering in Africa Devan Pillay said at a hearing this week. Pillay urged the energy regulator to keep price rises in line with inflation to avoid creating a recession, and suggested tax increases as a viable alternative to raise revenue.

Some have estimated that the price hike could cost the country as many as 200,000 jobs.