Eskom Reviewing Tariff Decision

LazyLion

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Eskom is reviewing the implications of Nersa's decision to grant it a lower than requested electricity tariff hike, Public Enterprises Minister Malusi Gigaba said on Wednesday.

"We are studying it in detail, because we need to understand what will happen to Eskom's operations through the build programme over the next five years," he said at a Cape Town Press Club breakfast.

Eskom welcomed the National Energy Regulator of SA's ruling, because this was to the benefit of consumers, but it presented problems Eskom would need to deal with.

Eskom had applied for a 16 percent increase in electricity prices in each of the next five years. This would have more than doubled the current price, taking it from 61 cents per kWh in 2012/13, to 128 cents per kWh in 2017/18.

Nersa announced at the end of February it had opted for an eight percent increase for each of the next five years.

Eskom had the right to appeal against Nersa's decision.

Gigaba said the lower tariff hike presented a problem for Eskom, as it had to decide on future power after completion of its second new coal plant Kusile, in Mpumalanga, in 2017.

"What I see is that we must work such that we take decisions early and quickly; sustainable decisions, so that we don't get the country back to the uncertainties and power supply insecurities of 2008," he said.

"When the last unit of Kusile delivers power, the next generation of power stations must already be in motion. I'm talking about the generation capacity that provides the base load."

He said government had thus made it clear that it remained resolute in pursuing nuclear options, while taking into account safety and technology issues.

The country seemed very nervous about the cost of nuclear, but forgot about the cost benefits in carbon emissions, and how costs "dramatically subsided" with security and long-term sustainability.

He said the nuclear programme could be one of the critical drivers of industrialisation which the country sought.

"But before then, perhaps it is time that we consider taking a firm decision on coal three, in order to meet the security of supply challenges at a later stage, given that taking a decision on nuclear and the need to implement it properly and raise funds is going to take time."

Gigaba said his department was in discussions with the energy department and Eskom on whether to bring the this third coal-fired power station project forward, initially planned for after 2025.

"I think we should [bring it forward], but we are discussing that with the Minister of Energy [Dipuo Peters]," he said.

Gigaba was asked whether the State would continue to help bail out parastatals.

"Do I anticipate further government support for Eskom and SAA? I would be lying if I said no," he replied.

Implementation of long-term strategies would require support in some form, including financial support.


Source : Sapa /je/hdw/dd/jk
Date : 08 May 2013 11:34
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
99,776
Eskom, you can go and fsck yourself.. plain and simple.

We are no longer anywhere near the cheapest in the world, and you want to push us into arguably the highest priced electricity in the world.
 

atomcrusher

Expert Member
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Jun 27, 2006
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4,208
From the article ..
Eskom is reviewing the implications of Nersa's decision to grant it a lower than requested electricity tariff hike, Public Enterprises Minister Malusi Gigaba said on Wednesday.

"We are studying it in detail, because we need to understand what will happen to Eskom's [-]operations[/-] multi-million Rand executive's bonus payouts
.. Corrected the article :mad:
 

Mike Hoxbig

Honorary Master
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Apr 25, 2010
Messages
38,083
Their own fault for granting long term contracts with discounted rates to those aluminium smelters, and not building more capacity sooner when they knew this day would come. Now we must fork out for their fsckups.
 

marine1

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48,784
Eskom has to be one of the most corrupt morally bankrupt criminal run organisations in this country.
They have become the mafia of electricity supply in this country
 
K

kingrob

Guest
Eskom has to be one of the most corrupt morally bankrupt criminal run organisations in this country.
They have become the mafia of electricity supply in this country

Agreed.

Instead of delivering a service to South Africans as a state owned company, they are actually chasing huge profit margins now.

It's utterly disgusting. :sick:
 
K

kingrob

Guest
Privatise.
Competition is lacking.

The startup costs are too high.

Can you imagine the costs of building a power station, then supply it with charcoal daily & trying to undercut Escom while trying to service your huge mountain of debt at the same time?
 

RaptorSA

Executive Member
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Sep 2, 2008
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5,035
Just as expected. Next up: Power cuts, regular media briefings to scare us even more etc. etc.
-PROFIT-

We're all being held for ransom and there's nothing we can do about it.
*sigh* I hate this place.
 

Mike Hoxbig

Honorary Master
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Apr 25, 2010
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38,083
The startup costs are too high.

Can you imagine the costs of building a power station, then supply it with charcoal daily & trying to undercut Escom while trying to service your huge mountain of debt at the same time?
Could always split it up into separate entities and force them to compete, with perks for the best performing company. That's too progressive for our government though, they won't get a cut if everything is not within their control.
 

Macethy

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Mar 20, 2012
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417
Agreed.

Instead of delivering a service to South Africans as a state owned company, they are actually chasing huge profit margins now.

It's utterly disgusting. :sick:

They have to chase profits because Eskom subsidies failing government departments that would collapse otherwise. Much like e-toll will do once it comes online, will be a cash lifeline to some of the completely failing government departments...
 

TelkomUseless

Honorary Master
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Mar 13, 2006
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11,977
They have to chase profits because Eskom subsidies failing government departments that would collapse otherwise. Much like e-toll will do once it comes online, will be a cash lifeline to some of the completely failing government departments...

Exactly. We are being robbed by goverment. We have no choice to hand over money. E-tolls , eskom ... easy money for goverment to subsidise them...
 

Paul_S

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We have no choice to hand over money.

One still has a choice.
Use back roads, install solar PV and water heating, etc.

In the long run people are going to have to become self sustaining in order to reduce their expenses at which point the government will just introduce silly taxes to make up the shortfall.
The tipping point comes when society as a whole rebels and refuses to pay and government can't afford to jail all the remaining tax payers.
 

TelkomUseless

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Mar 13, 2006
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11,977
One still has a choice.
Use back roads, install solar PV and water heating, etc.

In the long run people are going to have to become self sustaining in order to reduce their expenses at which point the government will just introduce silly taxes to make up the shortfall.
The tipping point comes when society as a whole rebels and refuses to pay and government can't afford to jail all the remaining tax payers.

Agreed. Only negative is solar power (which cost a pretty penny). And the damn traffic on these backroads (I drive thru pta to avoid the tolls, it's at least 30min longer drive).

When people start doing solar power/avoiding e-tolls, they'll just start taxing something else.. or raise taxes. No matter what.. they want to get our money!

I hate the goverment... I seriously do.
 

Denyed

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Jan 8, 2011
Messages
305
I would like to point out to all of you guys it is not Eskom that have high electricity prices, it is the municipalities that make 100%+ profit when they sell it to you. Eskoms price for electricity is 61c/kWh but I pay R1.30 because of municipality mark up. To put this into perspective of what 61c/kWh gets you: Eskom generate the electricity, transport it hundreds of km, deal with security of supply issues and ensure the grid maintains reliable operation. All for 61c...

The municipality makes 69c/kWh. They buy electricity in bulk from Eskom and supply it to you in your home a few km away using networks Eskom built and paid for years ago and gave to the municipality as part of their public service.

Please instead of wasting your energy blaming Eskom for high electricity prices try and get your municipality to stop ripping you off and funding their coffers for doing very little. Unfortunately the news networks do not focus on the problem of the municipalities that have to pay out their big bonus' funded by the profit on electricity.
 

marine1

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Sep 4, 2006
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48,784
I would like to point out to all of you guys it is not Eskom that have high electricity prices, it is the municipalities that make 100%+ profit when they sell it to you. Eskoms price for electricity is 61c/kWh but I pay R1.30 because of municipality mark up. To put this into perspective of what 61c/kWh gets you: Eskom generate the electricity, transport it hundreds of km, deal with security of supply issues and ensure the grid maintains reliable operation. All for 61c...

The municipality makes 69c/kWh. They buy electricity in bulk from Eskom and supply it to you in your home a few km away using networks Eskom built and paid for years ago and gave to the municipality as part of their public service.

Please instead of wasting your energy blaming Eskom for high electricity prices try and get your municipality to stop ripping you off and funding their coffers for doing very little. Unfortunately the news networks do not focus on the problem of the municipalities that have to pay out their big bonus' funded by the profit on electricity.

Can you link to the actual prices?
 
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