Eskom’s proposed 15% hike sparks fury

[BTTB]

Eskom’s proposed 15% hike sparks fury

Ross said the proposed 14.6 percent price hike was triple the rate of inflation that the Reserve Bank worked hard to contain. On the back of tariff increases of 24.8 percent, 25.2 percent and 16.09 percent over the past three years

With interest rates at record 30 year lows and a world wide recession, Eskom and Government should be told to take a hike literally.
I notice that electricity is charged on a sliding scale like water now, never used to be the case. I suspect this was intended to help the poor people who use very little, but the paying public have been stretched to the limit and that is not right.

I don't know of any business that can fund Capital Expenditure through increased tariffs upfront.
It is like me adding another branch to my business, but raising the prices of my stock first so that my customers pay for it. In most cases Capital Expenditure is funded through long term loans, only in South Africa does Eskom get away with the pay now, you will receive later ideology. Not fair on a developing economy that needs electricity to expand.

[bekdik]

Not fair on a developing economy that needs electricity to expand.

Eskom is one of many ANC slush funds.

You need to reread your signature

[ToxicBunny]

I will be discussing this increase with my Councillor as well as sending the regulator a very strongly worded letter (its not much, but its about the best that can be done unfortunately)

[BTTB]

Eskom is one of many ANC slush funds.

You need to reread your signature

I would not be surprised that Accumulation, Nepotism and Cronyism is well entrenched at Eskom. Awarding of contracts and bonuses must amount to countless Billions.

LOL, I just read my signature again, it is so appropriate for the stuffy shirt brigade we have for Corporates in this country, HOWEVER Eskom is not a "for gain" Company, it is supposed to base itself on productivity and keeping the lights on at break even cost to the country.
I would prefer if Eskom measured itself in Cost Per Unit than the latest Financial Report that reflected a rather large surplus as a result of the higher electricity prices.

My fear of privatising a Company like Eskom is going to result in another Telkom down the line. Stacks of BEE shareholders and other hangers on with no thought in actually improving the service in the country of origin. End result, higher cost to man on the street....hang on we have that already. But yes, any attempt in privatising Eskom will end up as merely a scramble by everyone that is "connected" and what they can get out of it.
It may well be the ANC's intention to fund Capital Expenditure upfront with tariff increases and when the infrastructure is up and running, privatise it and reap the benefits, ANC style.

My thoughts is that Eskom should never be privatised and the CEO should be tasked to run the business on a cost per unit basis. If Eskom becomes a place for a bit of sheltered employment, so what, that money will wind its way back into the country and not some greedy shareholder of unknown origin. Of course alternative suppliers of electricity should be encouraged to continue, but the bulk of the infrastructure should remain part of Government. My 2 cents.

[iAmThePope]

I really don't like price hikes fml

[Segg]

http://9gag.com/gag/4771499

[bekdik]

@BTTB

keeping the lights on even at the cost of breaking the country.

Fixed it for you!

[Mila]

ffs

My increase did not cover that.

[sox63]

Eskom’s proposed 15% hike sparks fury


With interest rates at record 30 year lows and a world wide recession, Eskom and Government should be told to take a hike literally.
I notice that electricity is charged on a sliding scale like water now, never used to be the case. I suspect this was intended to help the poor people who use very little, but the paying public have been stretched to the limit and that is not right.

I don't know of any business that can fund Capital Expenditure through increased tariffs upfront.
It is like me adding another branch to my business, but raising the prices of my stock first so that my customers pay for it. In most cases Capital Expenditure is funded through long term loans, only in South Africa does Eskom get away with the pay now, you will receive later ideology. Not fair on a developing economy that needs electricity to expand.

It seems you have not been following the Eskom developments closely, however that is exactly how they are going about it. i went through their Annual report the other day and saw that they have secured something like 77% of the build project financing so far. Those loans need to be serviced on a monthly/quarterly/annual basis and Eskom simply would not be able service the additional debt taken on without the increases AND keep current operations going.

Maybe go through the Annual Report for a complete picture? There is even a breakdown from the CFO Paul O'Flaherty (sp?) on the progress of the build programme. The media will only report on the juicy bits and not the whole picture.

[Paul_S]

The up side is that Eskom are going to make going off grid viable for the average household very soon.
The down side is that we can expect "renewable energy" taxes in future where we get taxed for using sunlight.

[Hemi300c]

Didn't these corrupt b@stids hand out huge bonuses last year - Oh well that's typical cANCer methodology.

[Cloudster]

Didn't these corrupt b@stids hand out huge bonuses last year - Oh well that's typical cANCer methodology.

I believe so, it's so ridiculous ... handing out fat bonuses to incompetent staff and execs not because they did a good job for that financial year but simply because they increased our rates. So idiotic, I have no words.