Eskom still considering tariff increases

QuintonB

QuintonB

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Eskom mulling tariff increases

Eskom is mulling the wisdom of demanding tariff increases that will make the electricity price fully cost-reflective in five years, the utility said on Tuesday.
 
Eskom say they're paying about 10% on the money they borrow. That sounds like too much for a company borrowing a couple of hundred billions. I pay less than that on my bond:wtf:
 
This is like politicians (especially corrupt ones like the ANC) voting themselves higher salaries. Who's going to check on them that they be honest in their calculations?
 
R13... said:
I pay less than that on my bond:wtf:
Click to expand...
Never mind bond...you get credit cards at 7.5%. How a parastatal can end up with 10% is beyond me. Thats like 10 billion per year down the drain right there.:sick:
 
Saldanha R1.48,88 and if they need 50% more I don't know where it must come from :mad:
 
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Insane - Average residential electricity in RSA is more expensive than USA

Insane - Average residential electricity in RSA is more expensive than USA!

How come electricity in RSA is more expensive that USA?
This does not factor in the relative purchasing power of USD vs ZAR (which make it worse).

  • The average residential cost of electricity in USA is USD0.125/KWh = R1.04/kWh (using $1=R8.32).
  • The residential cost of electricity in USA is in Wyoming is USD0.097178/kWh = R0.8085/kWh
  • In Johannesburg (CoJ) City Power, a resident that averages 600kWh/per month on prepaid is changed a rate of R1.2215/KWh (inc VAT)
In 2011 CoJ/CityPower paid Eskom 47.7c/kWh, and billed it out at 74.28c/kWh-100.33c/kWh
In 2012, for an average consumer of 600kWh/month, CoJ/CityPower charges R1.2215/KWh (inc VAT)
The 122.15c/kWh rate is because CoJ/CityPower use "non-telescopic" Inclining Bulk Tariff (IBT) - in violation of NERSA guidelines:
In order to maintain the design principle that the tariff should be easy and economical to administer/implement NERSA decided to limit the IBT to a 4 block telescopic tariff structure. The telescopic IBT structure allows for consumers to get the first block at the low price with large customers seeing a more efficient (higher) price in the higher blocks. A non-telescopic IBT structure is one where the low consumption customers pay the lower price for all units consumed whilst the large consumption users pay the higher price for all units consumed.
Click to expand...
If these increases of 15% per year for three years go through, we will be paying:
2012: R1.2215/kWh current - (inc VAT)
2013: R1.40/kWh (inc VAT)
2014: R1.62/kWh (inc VAT)
2015: R1.86/kWh (inc VAT)
With Carbon Tax this could climb to 19%.
This will probably be the highest residential cost of electricity in the world (New York pays USD0.186=R1.55/kWh went down from 2011)

The problem is that residential consumers only use 16-18% of electricity.
The Eskom factor - Greenpeace:
At the moment industry and mining consume over 60% of the electricity produced in the country, and the inclusion of commerce takes this figure to almost 75% Therefore, residential energy use makes up a far smaller portion of final energy demand than in other countries, and demand from poor households is even smaller. Only 16-18% of South Africa’s electricity is used by residential consumers, an outcome of the energy intensive nature of the economy, and the extreme income differential in the country
Click to expand...
The big consumers of electricity (Industry & Mining) have fixed contracts, and are not subject to these increases.
 
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system32 said:
Insane - Average residential electricity in RSA is more expensive than USA!

How come electricity in RSA is more expensive that USA?
This does not factor in the relative purchasing power of USD vs ZAR (which make it worse).

  • The average residential cost of electricity in USA is USD0.125/KWh = R1.04/kWh (using $1=R8.32).
  • The residential cost of electricity in USA is in Wyoming is USD0.097178/kWh = R0.8085/kWh
  • In Johannesburg (CoJ) City Power, a resident that averages 600kWh/per month on prepaid is changed a rate of R1.2215/KWh (inc VAT)
In 2011 CoJ/CityPower paid Eskom 47.7c/kWh, and billed it out at 74.28c/kWh-100.33c/kWh
In 2012, for an average consumer of 600kWh/month, CoJ/CityPower charges R1.2215/KWh (inc VAT)
The 122.15c/kWh rate is because CoJ/CityPower use "non-telescopic" Inclining Bulk Tariff (IBT) - in violation of NERSA guidelines:

If these increases of 15% per year for three years go through, we will be paying:
2012: R1.2215/kWh current - (inc VAT)
2013: R1.40/kWh (inc VAT)
2014: R1.62/kWh (inc VAT)
2015: R1.86/kWh (inc VAT)
With Carbon Tax this could climb to 19%.
This will probably be the highest residential cost of electricity in the world (New York pays USD0.186=R1.55/kWh went down from 2011)

The problem is that residential consumers only use 16-18% of electricity.
The Eskom factor - Greenpeace:

The big consumers of electricity (Industry & Mining) have fixed contracts, and are not subject to these increases.
Click to expand...

These long term fixed contracts are the problem for US.... We get raped and subsidise the mines and ****... Once I get my own place I'm really comsidereing going off the grid!
 
My folks are so lucky to be off the grid 100%, but it cost them over 100k for good quality components. Would take me 10 years+ to pay that capital outlay off
 
Electricity is just one in many. Our infrastructure is collapsing and someone needs to pay for it. Expect rates and taxes to increase in the coming years too.
 
This is stifling our economy. My electricity charges for my little office business have sky-rocketed.
 
I can only facepalm.

Jobs, food prices etc will suffer (joblosses , expensive foods, business slow down).. but nope.. let increase eskom prices.

Edit: I know a person that works at municipality (electrical). The bosses claims overtime even though they are not there, tender bribes are expected..
so yea.. shows you where our money is going...
 
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