Eskom keeping mum on steep [massive] power price increase

LazyLion

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http://www.timeslive.co.za/local/2012/10/11/eskom-keeping-mum-on-steep-power-price-increase

Eskom has declined to comment on a news report that it would ask the National Energy Regulator of SA (Nersa) to almost double electricity prices over the next five years.

"We are busy finalising our application and will be submitting hopefully later this month," Eskom spokeswoman Hilary Joffe said on Thursday.
The Sowetan earlier reported Eskom would ask Nersa for revenue totalling R1.7 trillion over five years.
This would see household electricity prices rising from 60c per kilowatt hour to 112c.
Joffe said the Sowetan did not have Eskom's "final numbers" as these were still being drawn up.
"We were ready to submit at the end of August but we were asked by government to do additional work."
The next five-year tariff period will come into effect on April 1 next year, and Nersa needs to make a decision by March.
"We are very keen to have South Africans engaging with the application and participate in the public process," Joffe said.
The Sowetan warned that price increases of this magnitude would have devastating consequences for poor households.
It could also threaten jobs in energy-intensive sectors.
However, below-inflation increases could threaten Eskom's credit ratings.
Further price increases would also force consumers to use less electricity.
One way to rein in electricity price hikes would be to keep coal costs under government control.
Coal accounts for 50 percent of Eskom's cost base.
However, this would reduce returns to mining companies, the daily reported.

I have no words....
 

daveza

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http://www.moneyweb.co.za/moneyweb-...ntracts-could-cost-eskom-r55bn?sn=2009 Detail

Eskom may suffer an accounting loss of up to R5.5bh over the next eight years as it continues to supply electricity to BHP Billiton’s aluminium plants in Richards Bay in terms of secret supply agreement.

Eskom CEO Brian Dames said in parliament that Eskom continues with efforts to renegotiate the contracts, but that efforts to date have been unsuccessful.

In terms of the contracts, which were signed in the early 1990s and 2000s and run for 25 years, the price the smelters pay from electricity is linked to several international derivatives. These include international price of aluminium, the exchange rate and the production price indices of several countries, including the US.

Currently, the international price of aluminium and the exchange rate of the dollar is at record low, which results in BHP Billiton paying much less for electricity than it costs Eskom to generate and distribute it.

The extent of the apparent underpayment is significant. DA councillor Pieter van Dalen recently claimed that the smelters pay between 8.8c and 10c /kWh for electricity, while households pay around R1.20.
 

Refraction

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I also want to live where electricity is 60c per Kw/Hr. Mine is already at R1.18 Kw/Hr so what are they talking about or is my municipality screwing me over, oh wait yes they "lost" 2 billion last year....go figure.
 

Cius

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The price of energy is going up worldwide but that is still very steep. We need more breakthroughs in this area.
 

LazyLion

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I also want to live where electricity is 60c per Kw/Hr. Mine is already at R1.18 Kw/Hr so what are they talking about or is my municipality screwing me over, oh wait yes they "lost" 2 billion last year....go figure.

There is the price Eskom charges the Metros, and then the price the Metros charge you.
There is also a scale of usage, which if you use more than a certain level, you pay a higher rate.
 

wily me

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Time to get of the grid! Install coal stove to generate heat and warm water and use gas lamps, Fsuck Telkom, Fsuck the ANC and not least FSuck all those that support the brainless ANC regime.
 

wily me

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The price of energy is going up worldwide but that is still very steep. We need more breakthroughs in this area.

Coal reserves and Sasol was our break through but alas all that are sold by those in power for fsuckall and self gain and we have to foot the reakl bills.
 

CAPS LOCK

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It's so easy when you have the monopoly to just increase you commodity price at lib. There's no light at the end of this tunnel.
 

OGroteKoning

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This thread heading is all wrong ... it should start with "Scam Alert!!!"
But then again, with increases of 500% (HR director), one should probably expect this and more
 

gregmcc

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Time to get of the grid! Install coal stove to generate heat and warm water and use gas lamps, Fsuck Telkom, Fsuck the ANC and not least FSuck all those that support the brainless ANC regime.

Much like heading back to the dark ages! :crying:
 

ShaunSA

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Reminds me of that joke...

What did SA have before candle-light.... Electricity :D
 

TJ99

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The Sowetan warned that price increases of this magnitude would have devastating consequences for poor households.

Wrong. It would have devastating effects on almost everything.

It could also threaten jobs in energy-intensive sectors.

Wrong again. Energy-intensive sectors (which use the vast majority of electricity in the country), are getting their power for dirt, stinking, ****lips-cheap. The'll be scoring massive profits since the cost of everything else will skyrocket, thus increasing inflation, while their input costs remain at 1980's levels.

I wonder how long this level of looting can continue before the whole thing (meaning the economy) literally collapses. Apparently quite a lot but I have a feeling we're going to find out.
 

Pitbull

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There should be a law written against what these type of entities including Government keeps doing every year...

First off they ask for stupid increases like 60% or alike. Then when the government accept let's say 30% the public is just happy it's not 60% but 30%. It's still a stupidly huge increase but we accept it just being happy it's not 60. This should be stopped.
 
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TJ99

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There should be a law written against what these type of entities including Government keeps doing every year...

First off they ask for stupid increases like 60% or alike. Then whe the government accept let's say 30% the public is just happy it's not 60% but 30% is still a stupidly huge increase but we accept it just being happy it's not 60. This should be stopped.

It's the standard ANC govt procedure. They do it every. single. time.

Govt: Price of petrol is going to increase by R1 per litre
Poor suckers who have to pay: RAAAAAAAGGGGEEE!
Govt: In our wise benevolence, we have decided petrol will only increase by 20c per litre!
Suckers: Oh, thank you kind masters, at least it could have been worse. Why are you all so negative? It could have been worse.

Same with the yearly electricity increases, same with e-trolls, same with wanting to change the name of the ****ing capital city, to "just" changing street names, etc. etc. etc.
 
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