Concern as electricity usage dips [NMBM]

[MickeyD]

THE Nelson Mandela Bay Municipality is facing a budget dilemma, as the city recorded a sharp drop in electricity usage over the past two months, which equates to a R27-million loss in electricity sales. Officials are baffled by the 18 million kWh drop in electricity consumption in June and July, at a time when electricity usage is usually at its peak.

This will place the city’s R8.84-billion budget in jeopardy, as 37% of the city’s total revenue comes from electricity sales.

At an infrastructure, engineering and energy portfolio committee meeting yesterday, acting executive director for electricity Peter Neilson said Eskom contacted him on Monday wanting to know why there had been such a major drop in consumption.

"Eskom wanted to know from us why we were not using the electricity we normally use. We forecast the amount of electricity we expect to use based on our usage history and Eskom saw that it was down by 9 million kWh in June and July.”

Neilson said the reason for the drop could be that people could no longer afford to buy as much electricity as before, or the save-electricity campaigns were actually working.

"This is a problem because we are one month into the budget for the new financial year and this represents a 5% decrease in the expected revenue for June and July.

Rochelle de Kock
http://www.peherald.com/news/article/17974

 

[Lupus]

Wait they are complaining about electricity usage dropping? When they've been punting everyone to conserve it? Can they make up their minds?
Also agree with you Mickey, it seems to be the South African way of thinking though, oh we aren't making enough money we need to increase prices, which then makes fewer people able to afford it.

 

[MickeyD]

The sad part of this is that this morning they have reported that they may need to increase the electricity tariffs to make good this shortfall !!!!!

:wtf:

Don't they learn? If they increase the price it won't lead to more revenue if the people cannot afford it !!!!

 

[HapticSimian]

When you set out to screw the consumer the consumer will eventually screw you instead.

 

[MKFrost]

Simple supply and demand...

You keep on pushing prices up resulting in people using less. What did they expect?

 

[Seriously]

I can only shake my head, what more can we say about the farce running this country?

 

[grok]

Officials are baffled ..

Reasoning like children with no concept of consequences of their actions.

1) Eskom stuffed up supply with their policy of transformation at all cost.
2) Eskom hiked up prices by ridiculous amounts so people couldn't afford their usual quota.
3) Eskom begs people constantly on tv & over the radio to use less as there isn't enough to go around (see step 1)

Now suddenly they don't understand why everyone's losing out on income? And their proposed solution is to increase prices which will just worsen the cycle as alternative energy sources will become affordable instead?

God this is elementary stuff .. really begs the question why they're getting paid such big salaries when a child could figure this out.

 

[AstroTurf]

What else could they possibly expect to happen?

They thought they were the only source of energy.
I bet people have been buying gas, LED's and the like for years now and this is the result.

We are currently converting many machines into gas and buying gas as opposed to electricity wherever we can.

 

[spiff]

Officials are baffled by the 18 million kWh drop in electricity consumption

- DUH!! what do you think - it's too fooking expensive - what's happened dumbass is the price of electricity has reach a point where it is no longer affordable to many people.

it's no longer a "must have" commodity!! people are finding alternative ways! eg. gas / solar!

 

[grok]

Well that didn't take long .. round no 2 anyone?

WATER-GUZZLING businesses and residents in Nelson Mandela Bay face the prospect of higher tariffs if they do not cut back on consumption.

http://mybroadband.co.za/vb/showthr...dents-warned-to-cut-back-on-water-consumption

 

[biena]

Well that didn't take long .. round no 2 anyone?

Round 2 is when people actually cut back on water consumption and then the municipality is again puzzled about it.

 

[froot]

Reasoning like children with no concept of consequences of their actions.

1) Eskom stuffed up supply with their policy of transformation at all cost.
2) Eskom hiked up prices by ridiculous amounts so people couldn't afford their usual quota.
3) Eskom begs people constantly on tv & over the radio to use less as there isn't enough to go around (see step 1)

Now suddenly they don't understand why everyone's losing out on income? And their proposed solution is to increase prices which will just worsen the cycle as alternative energy sources will become affordable instead?

God this is elementary stuff .. really begs the question why they're getting paid such big salaries when a child could figure this out.

Eskom's not really scoring or not scoring from this.... half the municipalities owe them billions... I know last year the Tshwane Metro owed them over R500m (that it could not pay due to poor budgeting).

 

[daveza]

half the municipalities owe them billions

So why don't they cut them off as happens to us if we don't pay ?

 

[Solarion]

I'm starting to become very concerned about the sanity of the people working at Eskom.

 

[supersunbird]

Another thing... me and my coleagues were discussing it earlier. This winter is just not nearly as cold as to other recent year. Maybe less heaters are used.

 

[Budza]

This will place the city’s R8.84-billion budget in jeopardy, as 37% of the city’s total revenue comes from electricity sales.

Useless!

They do nothing for that- it's just a markup on what Eskom provide.

**** them if they rely on that to supply their gravy.

 

[pboy]

NMBM are part of the Eskom IDM Winterplan and are contracting and agree to drop consumption during peak times by means of the ripple program.
they get paid a ridiculous amount per kw/h NOT CONSUMED so they must not come with this BS!

 

[Pilgrim]

Another thing that Eskom and their related gravy boat buddies seem to have missed is that while electricity was dirt cheap alternative energy just did not make any sense.

Going "off the grid" for R100k just does not make sense if your electricity bill is R500 per month as it would take 16 years to recoup your investment.

However, when your bill is R1500 per month suddenly you look at a 66 month investment, 5.5 years.

What makes it even funnier is that alternative energy options are becoming CHEAPER while Eskom is becoming more expensive. If they are not there yet they will soon pass the point where it becomes insane to NOT ditch them!

 

[ToxicBunny]

So why don't they cut them off as happens to us if we don't pay ?

Because that would mean EVERYONE in Tshwane would be without power....

Its the same as Durban, Eskom provides power to Durban municipality, who then distribute it to the residents...

 

[ToxicBunny]

Another thing that Eskom and their related gravy boat buddies seem to have missed is that while electricity was dirt cheap alternative energy just did not make any sense.

Going "off the grid" for R100k just does not make sense if your electricity bill is R500 per month as it would take 16 years to recoup your investment.

However, when your bill is R1500 per month suddenly you look at a 66 month investment, 5.5 years.

What makes it even funnier is that alternative energy options are becoming CHEAPER while Eskom is becoming more expensive. If they are not there yet they will soon pass the point where it becomes insane to NOT ditch them!

Where do you live that you are able to get off the grid for R100k?

Please point me in that direction.