Eskom wants to pass costs on to consumers

[rpm]

Eskom wants to pass costs on to consumers (http://mybroadband.co.za/news/General/3367.html)


Power utility Eskom on Wednesday said it had asked the National Electricity Regulator of SA (Nersa) to consider allowing them to pass through some of its raw material costs on to the consumer.

[ToxicBunny]

They can fsck right off....

Although they're passing the costs off as it is anyway.

[icyrus]

I will agree to a certain level of increase on some conditions:

- All current upper management in eskom are fired without severance pay of any kind.
- All government members involved in the decision making with regards to electricity are fired and blacklisted from ever holding a public service position again.
- mbeki must go immediately.
- All eskom dealings must now be 100% transparent and overseen by an independent authority. Everything must be published online and viewable and searchable by the public.

Do that, and then we can talk about passing on costs.

[Moederloos]

I am not even sure what that means.
Every time I buy anything, I am paying for the raw materials... Or does, for example, Albany simply not pass on the cost of the flour?

[zeb]

I always thought when we pay our accounts we give them the money to buy the material, provide the electricity, etc, etc. :confused:

[ToxicBunny]

I completely agree with icyrus on those conditions, except I'd make number 1 a bit more strict....

All current upper manager in eskom must be fired, with no severence pay, and must be required to pay back any bonuses received in the last 10 years with interest.

[bekdik]

I completely agree with icyrus on those conditions, except I'd make number 1 a bit more strict....

All current upper manager in eskom must be fired, with no severence pay, and must be required to pay back any bonuses received in the last 10 years with interest.
Agreed.

Eskom has been declaring profits, paying bonuses for their great performance and paying dividends.

Now, I've always understood that profit = income - expenditure, so if a profit has been made then costs have been covered. If costs have been artificially minimized, then a fraud has taken place and all of those who have benefited must be prosecuted. Should the business be no longer sustainable, then it must be placed under judicial management.

[CathJ]

I always thought when we pay our accounts we give them the money to buy the material, provide the electricity, etc, etc. :confused:

Ah, I understand now after reading the Mail & Guardian article (http://www.mg.co.za/articlepage.aspx?area=/breaking_news/breaking_news__business/&articleid=336100). They want to make it like petrol, where the price fluctuates as their costs fluctuate:


Eskom CEO Jacob Maroga was arguing for regular electricity-price adjustments similar to those in the fuel sector.

"When we started with the current multi-year model of pricing, we did identify certain categories of costs that were very difficult to predict, even in a year, let alone a three-year period," he said at a media briefing in Johannesburg.

Eskom had suggested to the National Energy Regulator of South Africa (Nersa) a system, used worldwide, of "pass-through costs".

There were certain costs Eskom could not forecast with such accuracy that it could manage them on its own, he said.

"So with those costs, you pass through those costs to the consumer."

Might be a bit tricky for them if everyone switches over to prepaid...

[chiskop]

I think you guys are being unreasonable. Do you think executive bonuses pay for themselves?

;):(:o

[VJB 449]

Each year bonus time input costs will increase.

[Alan]

I will agree to a certain level of increase on some conditions:

- All current upper management in eskom are fired without severance pay of any kind.
- All government members involved in the decision making with regards to electricity are fired and blacklisted from ever holding a public service position again.
- mbeki must go immediately.
- All eskom dealings must now be 100% transparent and overseen by an independent authority. Everything must be published online and viewable and searchable by the public.

Do that, and then we can talk about passing on costs.

Replaced by who? Zuma :eek:

[bekdik]

One of the excuses Eskom gives is that it has contracts with large users such as Billiton and that it is contractually obliged to supply electricity at ridiculous prices.

If this is indeed the case and Eskom cannot supply electricity to the inhabitants of RSA at reasonable prices, then Eskom must be declared bankrupt and its assets sold off to a new company, a company which then does not take over existing contracts unless the price is increased to market related levels, a price which allows a maximum usage based on Eskom's generation capacity at any time.