Eskom is getting killed - expert

Jamie McKane

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Eskom is getting killed - expert

High electricity prices are dampening economic growth and reward incompetence and irrationality at Eskom, energy adviser Mike Rossouw warned.

In an article in Rapport, Rossouw wrote that the government continue to allow Eskom to increase prices despite the negative impact it has on all parties.
 

Zoomzoom

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You'd think that this was patently obvious, but apparently it is not.

So KISS version ... high prices=low sales. low prices=high sales.


Now if you are selling a low quantity item high value makes sense. If you are selling an item consumed in bulk (like oh say water or electricity) you need to keep the damn prices as low as possible so people will use it! No use, no money.
 

krycor

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He added that Eskom is selling electricity at 90 cents which costs the company 112 cents to produce.

An additional problem is that many of the municipalities which it sells electricity to do not pay their bills. This, Mabuza said, amounts to around R40 billion.

While Eskom is heavily overstaffed, the company is prohibited from cutting jobs which makes it nearly impossible to become more efficient.

“The president said we can’t retrench, which means we are looking at other ways. The pain has to be taken by suppliers, customers, shareholders, employees, and management,” he said.
Uhm.. I reckon even if they retrench they won’t get that cost/kWh down enough and that’s without considering non-payment by municipalities & supply optimization which I suspect is both needed just to break even.

Curious how municipalities are allowed to sell at a higher price and not pay.
 

Arthur

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The problem isn't Eskom's prices and mismanagement.

The real problem is that the government has a state-enforced monopoly on power production and distribution and that it legally prevents anyone else from generating electrical power and selling it. Furthermore, the State arrogates to itself the communist power of setting retail prices.

Our problems with Eskom would be solved overnight if the State abolished these outrageous coercive and compulsory monopolies.

(The handful of non-Eskom generators at municipalities and mines antedate the 1922 law that entrenched the State monopoly on electricity production.)
 
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system32

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Eskom’s R20.7-billion loss over the last financial year is the largest ever by a state-owned company in South Africa.
And
An additional problem is that many of the municipalities which it sells electricity to do not pay their bills. This, Mabuza said, amounts to around R40 billion.
There's your problem & solution right there.
R40billion > R20.7billion - just collect what's owed.
I won't mention the R18billion owed by Soweto.1566109179612.png
 

Hemi300c

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Fvcking idiots running it, fvcking idiots in charge and they all incapable of fixing anything.
 

Thor

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So nothing new then. Just another guy writing the same stuff
 

Steamy Tom

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No matter how much you educate a man of colour he/she will still have finger in the nose.
Sabc
Eskom
Transnet
Health care
Saa
We have no hope but to Sit and watch this country end up like other African countries, South Africa was civilised, now a man of colour runs its, doesn't care about rubbish on the streets, doesn't care about sewage infrastructure, doesn't care about attracting investment and will never retrench in overstaffed companies because 1 man of colour will never let another man of colour down, he will see him stealing and tell "i dont know anything" if many of us had money we would move out of this country but we don't so we have to live amongst the leaking sewage and kfc litter and cops who get beaten up by foreigners, what a **** hole but we have no choice to call it home, we all vote to change South Africas name to **** hole
sjoe
 

Sean008

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No matter how much you educate a man of colour he/she will still have finger in the nose.
Sabc
Eskom
Transnet
Health care
Saa
We have no hope but to Sit and watch this country end up like other African countries, South Africa was civilised, now a man of colour runs its, doesn't care about rubbish on the streets, doesn't care about sewage infrastructure, doesn't care about attracting investment and will never retrench in overstaffed companies because 1 man of colour will never let another man of colour down, he will see him stealing and tell "i dont know anything" if many of us had money we would move out of this country but we don't so we have to live amongst the leaking sewage and kfc litter and cops who get beaten up by foreigners, what a **** hole but we have no choice to call it home, we all vote to change South Africas name to **** hole
:unsure: Who pissed in your coffee this morning ?
 

j4ck455

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Eskom said:
“The president said we can’t retrench, which means we are looking at other ways. The pain has to be taken by suppliers, customers, shareholders, employees, and management,” he said.
Isn't Eskom 100% government owned, as in there is 1 and only 1 shareholder (not plural)?

Or did he specifically not mention tax payers because he thinks tax payers are somehow shareholders?
The problem isn't Eskom's prices and mismanagement.

The real problem is that the government has a state-enforced monopoly on power production and distribution and that it legally prevents anyone else from generating electrical power and selling it. Furthermore, the State arrogates to itself the communist power of setting retail prices.

Our problems with Eskom would be solved overnight if the State abolished these outrageous coercive and compulsory monopolies.

(The handful of non-Eskom generators at municipalities and mines antedate the 1922 law that entrenched the State monopoly on electricity production.)
So you are saying that if president Ramaphosa had the power to declare (this or on some other future evening) that Eskom no longer has a monopoly on electricity production, that the very next day all electricity problems would magically be solved.

It takes time to build power stations, including renewables like solar and wind farms, these things do not happen overnight and it would also take a fair amount of time to get transmission lines in place etc etc etc.

Even a state owned and run monopoly (like Eskom) can successfully fulfil its intended mandate if it is managed properly, Eskom can and must be turned around, even if it loses its monopoly status Eskom still needs to be fixed.

South Africa does not have time to waste waiting for competing energy companies to create new power plants (whether coal, nuclear or renewables), the only short-term solution is for government to catch a wakeup and brutally turn Eskom around, without reliable electricity there is no economy, and without an economy the country tanks.

And by brutally, I mean retrench all of the dead wood, even go as far as reducing electricity prices in stages to breathe life back into the economy, and municipality budget money that National Treasury would normally pay directly to municipalities is conditionally paid if no debt is owed to Eskom.

There are lots of things that government can do to rescue Eskom, there is however no quick fix silver bullet for reducing that mountain of debt to more sustainable levels, it will take time to at least halve that debt, government just needs to start without further delays.
 

thechamp

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No matter how much you educate a man of colour he/she will still have finger in the nose.
Sabc
Eskom
Transnet
Health care
Saa
We have no hope but to Sit and watch this country end up like other African countries, South Africa was civilised, now a man of colour runs its, doesn't care about rubbish on the streets, doesn't care about sewage infrastructure, doesn't care about attracting investment and will never retrench in overstaffed companies because 1 man of colour will never let another man of colour down, he will see him stealing and tell "i dont know anything" if many of us had money we would move out of this country but we don't so we have to live amongst the leaking sewage and kfc litter and cops who get beaten up by foreigners, what a **** hole but we have no choice to call it home, we all vote to change South Africas name to **** hole
No option of going somewhere where there aren't any men of colour?
 

Polymathic

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I get power directly from Eskom and they charge me Over R1.16 /kW

Edit could be : R1.116 / kW I need to check my bill again
 

thechamp

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I get power directly from Eskom and they charge me Over R1.16 /kW

Edit could be : R1.116 / kW I need to check my bill again
That's cheap, It's now about R1.2/ kWh at my village, I thought we had a monopoly on cheap electricity. Where do you live?
 
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