Eskom folding?

S

Skinner

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Screw them! Get all that bonus money back from those inept, lazy, waste-of-matter management you employed to do sweet fanny adams and get us in this pile of poo!
 
That is the problem, they are here to deliver a service to SA but they make stupid amounts of profit... Look at the SABC :sick:
If they don't they want to increase the price or the license fee.
 
Scooby_Doo said:
Just have to up the cost for electricity, its unrealistic to expect the prices to remain so low and expect them to invest more.
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It is unrealistic to expect us to continue to feed the gravy train and contend with **** service levels.

Screw Eskom and the ANC.
 
Yes but our electricity is very cheap. I agree they should all be fired and the gov should be all replaced but even if that all happened the price of electricity should still be increased.
 
This has very little about making money but rather about sorting out their balance sheet so that they can raise the necessary funding.....
 
Scooby_Doo said:
Yes but our electricity is very cheap. I agree they should all be fired and the gov should be all replaced but even if that all happened the price of electricity should still be increased.
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It is not cheap anymore.
Cost our small company R150K to install a generator.
Cost me R2000 for my baby one.
We lost plenty of production last month.
I have all but left Africa for dead - so add that cost to the pile.

It is not cheap - it has cost this country plenty.



(I do know what you meant :D Just adding another view to the "cheapness" argument)
 
They can't claim that prices are too low AND pay out bonuses amounting to millions every year.
 
Nod said:
They can't claim that prices are too low AND pay out bonuses amounting to millions every year.
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Not about that (true, but thats a whole other issue) if prices for electricity were on par or higher that the world average private electrical companies would have setup shop here, but yeah that didn't happen. We can't expect that to still happen with our cheap ass electricity, guess we paying for all that cheap electricty with intrest.
 
fivelza said:
True but don't let that cloud the issue that they have to fund the fixup somehow.
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True, but they had budget for maintenance and/or expanding, or should have. At worst government should provide the funding, and if they can't, then there is always the world bank.

Placing the cost of the upgrading of the grid squarely on the shoulders of the consumer, is not going to work.
 
Nod said:
True, but they had budget for maintenance and/or expanding, or should have. At worst government should provide the funding, and if they can't, then there is always the world bank.

Placing the cost of the upgrading of the grid squarely on the shoulders of the consumer, is not going to work.
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The upgrading would have had to taken place in any event so the consumer would have paid for it.
 
Saying Eskom is folding is jumping the gun don't you think?

From what I understand from the article, there is just uncertainty as to where the additional funds are going to come from. Eskom had a healthy balance sheet, and I don't think they have spent it already, however the concern is that they don't have the resources to fund the expansion, without a significant capital contribution from its shareholder, the goverment.

We just have to wait for the budget speech. And unlike Sentech, Eskom can raise their own funding in the market, but they don't want to rely on that, as that will mean a helluva lot of debt.
 
fivelza said:
The upgrading would have had to taken place in any event so the consumer would have paid for it.
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Yes, and it would have been a gradual increase. But because it was not done, or not to the extent it should have been, they want to increase the price pretty dramatically.

Anyways, I believe government liked to boast how cheap our electricity was in relation to 1st world countries.
 
Nod said:
Yes, and it would have been a gradual increase. But because it was not done, or not to the extent it should have been, they want to increase the price pretty dramatically.

Anyways, I believe government liked to boast how cheap our electricity was in relation to 1st world countries.
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All true Nod, but has anyone done the sums that prove that if they had increased the tariff gradually we would not be in the same position. We are missing that we all 'benefitted' previously by having cheaper electricity.

One could also argue that the benefit is all wiped out by what is happening now.
 
In the long run, the cheap electricity has not been good. But that is hindsight.
Since '98, they should have planned better in order to prevent what we have today. Also hindsight.
Is there a easy way out of this? No.
Are they doing everything they can to rectify the situation? Maybe.
Will prices have to increase? Yes, and I'm all for it, if I can see where the money is going to.
Big bonuses, should have been stopped, and that money should have been saved for todays rainy day.
In the end, we will have to fall in line with whatever is decided at the top.
 
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