Eskom asks for 34% price hike

I'd tell them to bugger off. ESKOM as far as I can see makes a surplus of power every year, instead of over producing and costing money, get it right and then those overheads will be gone :D
 
Am i wrong is saying we have really cheap power? I am not defending eskom just wondering compared to the rest of the world is eskom cheap or expensive?
 
Give them the increase and let them get on with things.
 
killadoob said:
Am i wrong is saying we have really cheap power? I am not defending eskom just wondering compared to the rest of the world is eskom cheap or expensive?
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I would agree with you, but ask Telkom about 'Scale of Economies'. SA power is cheap if you got paid in dollars/euro/sterling. Its not cheap compared to the income brackets on S.A. Citizens
 
hj2k_x said:
So you are happy with annual 35% hikes?
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I demand first world class electricity supply and I'm prepared to pay for it.

How else do people think Eskom is going to build those power stations? The requirement is something around R350 Billion, and they cant go borrow that money, so they have to raise it through rates, and goverment has to pump more cash into it. Last year they pumped R60 Billion and there is still a LOT left to come from somewhere...
 
Give them more , December All Directors get 1Million Rand Chrismas package , Jan Rap en sy maat moet betaal.
 
sox63 said:
I demand first world class electricity supply and I'm prepared to pay for it.

How else do people think Eskom is going to build those power stations? The requirement is something around R350 Billion, and they cant go borrow that money, so they have to raise it through rates, and goverment has to pump more cash into it. Last year they pumped R60 Billion and there is still a LOT left to come from somewhere...
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Are you hearing yourself? Really? The governement has had plenty of money to put into the monster that is ESKOM. Arms deals, inauguration parties etc etc etc.... So you pay for first world electricity, the third world citizens of South Africa will either a) get it for a nominally cheaper price b) continue to sit in the dark. I posted figures here the other day. Why is ESKOM running at a surplus of power generated? I'm not sure whether that power is stored away for a rainy day (if in fact that's possible I don't know) or it gets "lost" in the system. Either way that surplus electricity cost money to make, money that could have gone towards whatever ESKOM needs this 34% increase for.

I don't understand your logic, you want to live in a first world way but are willing to accept third world business ethics....
 
sox63 said:
Give them the increase and let them get on with things.
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And in turn freeze all potential interest rate decreases, which is what the increase will result in.

I have no issue with Eskom introducing incremental price hikes - our electricity is cheap and we do need to fund a massive capital expansion programme, however the key word there being 'incremental', which is not what they are doing.

A 35% hike shows that their planning is completely fscked and something needs to be done about that. We cannot be held to ransom by Eskom every time a director feels like splashing out on some luxury. We need transparency regarding their planning, finances and capital expansion programme...
 
RetroBok said:
Are you hearing yourself? Really? The governement has had plenty of money to put into the monster that is ESKOM. Arms deals, inauguration parties etc etc etc.... So you pay for first world electricity, the third world citizens of South Africa will either a) get it for a nominally cheaper price b) continue to sit in the dark. I posted figures here the other day. Why is ESKOM running at a surplus of power generated? I'm not sure whether that power is stored away for a rainy day (if in fact that's possible I don't know) or it gets "lost" in the system. Either way that surplus electricity cost money to make, money that could have gone towards whatever ESKOM needs this 34% increase for.

I don't understand your logic, you want to live in a first world way but are willing to accept third world business ethics....
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Maybe you did not understand my post, but I said I demand quality supply, and to get that supply money has to be spent, whether it was spent 10 years ago or now, the cost to us the consumer would have eventually been the same in my book.

So we have a choice, continue paying 3rd world rates, however we must expect 3rd world service levels. And on another note, I support their rate hikes becuase I would prefer to not have Eskom being over indebted.

And where do you see me saying I'm willing to accept 3rd world business ethics?
 
DJK said:
And in turn freeze all potential interest rate decreases, which is what the increase will result in.

I have no issue with Eskom introducing incremental price hikes - our electricity is cheap and we do need to fund a massive capital expansion programme, however the key word there being 'incremental', which is not what they are doing.

A 35% hike shows that their planning is completely fscked and something needs to be done about that. We cannot be held to ransom by Eskom every time a director feels like splashing out on some luxury. We need transparency regarding their planning, finances and capital expansion programme...
Click to expand...

I agree with you on the interest rates.

However, the size of the increases is appropriate, IMO. Eskom had maintained that they are able to source a large chunk of the capital needed by obtaining credit, and we all know what happened to the financial markets. So it caused a situation where the 10-20% increases that we were always used to have now gone significantly up.

EDIT: Eskom's finances are transparent, you can go and download their report on their website. And with the Access to Information Act, they obligated to provide certain info should we as citizens want it.
 
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