ESKOM Confirms Price Increase

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Media Release - 22 January - PRICE INCREASE

Tuesday, 22 January 2008

ESKOM’S RESPONSE TO PRICE INCREASE FOR THE 2008/9 FINANCIAL YEAR

The National Energy Regulator of South Africa (NERSA) has announced its decision to grant Eskom a price increase that translates into an increase of 14.2% for the 2008/9 financial year. Eskom had applied for a rule change that would have resulted in an average increase of 18.7%. The application by Eskom was intended to address the recovery of the costs of primary energy (fuel) and for the acceleration of its capital expansion programme to meet growing demand for electricity.

Higher fuel costs are due to the fact that coal prices had risen over 30% in the last year, adding to power generation costs. Furthermore, the cost of plant and equipment has risen by 20% to 50% in the past year, and has doubled in five years.

The increase applied for is therefore necessary given the circumstances. It should also be pointed out that Eskom also makes a contribution by focusing on improved productivity and efficiency.

“The lower price increase will make it even harder for Eskom to satisfy conditions in the current financial markets to assure the funding needed for the capital expansion programme to ensure security of supply. Eskom will need to borrow more than if it had been granted the 18.7%. In addition, the current electricity prices are unsustainable and will result in steeper increases being required in the near future. However, Eskom would like to express its appreciation to NERSA for having considered our application in a transparent process and for acknowledging some of the challenges being faced by Eskom. We are considering the implications and the options available to us to manage the situation,” says Bongani Nqwababa, Eskom’s Finance Director.

Ends
http://www.eskom.co.za/live/content.php?Item_ID=5701
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A bit insensitive if you ask me.
 
They will find it easier to "satisfy conditions" if they:
1. Stop giving Zimbabwe free electricity and
2. Start charging townships for what they use and not a flat rate for "use till you drop"
 
How about i bridge out my prepaid meter?, Wait to get caught and pay a fine of R1500, much cheaper.
 
Pre-paid meters dont have monthly readers, remove the meter, bridge the connections(wait for load shedding before u fiddle so u dont kill yourself), reatach meter and you will never be cut of again :).
 
oh my word wtf is wrong with you people.

on average i pay 300-400 a month. The new increase adds another R50 to this.

to get excited over this is close to ridiculous. WTF do you people run in your house? particle accelerators?

Seriously never seen a bunch of people BLOW something out of proportion. Get solar panels for your geyser, use gas, use electricity sparingly. Eskom at least are planning to subsidise these things.
 
Eskom is stupid enough not to be able to supply electricity so now I have to pay more?!?


NUTS!

The situation we (as a consumer) are in now is all to blame on Eskom... you mean to tell me that they couldn't see this coming?
 
halicon said:
oh my word wtf is wrong with you people.

on average i pay 300-400 a month. The new increase adds another R50 to this.

to get excited over this is close to ridiculous. WTF do you people run in your house? particle accelerators?

Seriously never seen a bunch of people BLOW something out of proportion. Get solar panels for your geyser, use gas, use electricity sparingly. Eskom at least are planning to subsidise these things.
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To you!..

Now add a bond increase of 0.5% .. (R800 on an average house), then add fuel, then add school fees, then medical aid increases....

That R50 you speak could be the straw that broke the camels back.

:sick:
 
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You won't even feel the pinch until 2012 when the new power station is up and there is no more "load shedding". This 14% is to compensate for the outages when people don't use power and Eskom loses income.
 
Ricard said:
That R50 you speak is about could be the straw that broke the camels back.
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AGREED!

I'm already struggling as is, well, struggling as in, paying alot and having quite a little left at the end of the month, every cent I can save helps, now eskom wants more money! I've said it before and I'm saying it again... NUTS!
 
Ricard said:
To you!..

Now add a bond increase of 0.5% .. (R800 on an average house), then add fuel, then add school fees, then medical aid increases....

That R50 you speak is about could be the straw that broke the camels back.

:sick:
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If you can afford a house,children and you can afford medical aid and have time to complain on a forum then i seriously think your response is more out of sport then anything else.

cuz seriously the way people are going on about this increase one would think they increased it by 100%.
 
halicon said:
oh my word wtf is wrong with you people.

on average i pay 300-400 a month. The new increase adds another R50 to this.

to get excited over this is close to ridiculous. WTF do you people run in your house? particle accelerators?

Seriously never seen a bunch of people BLOW something out of proportion. Get solar panels for your geyser, use gas, use electricity sparingly. Eskom at least are planning to subsidise these things.
Click to expand...

R50 may be nothing to you but to those who are less affluent, that could be a huge difference.

so they're giving us less power and charging us more? mmm. makes perfect sense :)
 
Now add a bond increase of 0.5%
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I agree. The R50 or so extra it peanuts....BUT add in all the costs from everything else that is going up and you start to k@k!

The bond has gone up 1.5% points ready in the last few months - at each 0.5% increase you pay 500-800 extra!

That R50 you speak is about could be the straw that broke the camels back.
Click to expand...

This explains why I'm permanently walking in a bent over position!
 
halicon said:
oh my word wtf is wrong with you people.

on average i pay 300-400 a month. The new increase adds another R50 to this.

to get excited over this is close to ridiculous. WTF do you people run in your house? particle accelerators?

Seriously never seen a bunch of people BLOW something out of proportion. Get solar panels for your geyser, use gas, use electricity sparingly. Eskom at least are planning to subsidise these things.
Click to expand...

Evil geniuses are people too. And its not the particle accelerator thats using all the juice its the damned doomsday device. I am beginning to doubt if the monkey I employed really has an electrical engineering degree like he claimed.

Sigh. It so hard to find good (evil genius) help these days...
 
mercurial said:
R50 may be nothing to you but to those who are less affluent, that could be a huge difference.
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if you are less affluent chances are you will have less appliances which means your increase per a month would not be R50, but 14% of your usual monthly bill.

seriously an exaggerated over-reaction to a price increase that is purely of a sensitive nature due to the current electricity problems.

and i ask again when last did eskom increase their price?
 
LOL R50 for your house, my business electricity is R13000.00 pm + 14% = R14820.00 - 13000.00 = R1820.00 !!!!!!!, when you have to cough up at extre 2k permonth for 90% of the power supply you were getting then there is something to complain about. and you can bet your life i will bridge my prepaid meter at home!
 
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