Eskom - The bottom line cost.

[ambo]

Eskom shows a profit of R974 million for the year of 2008

Since you seem to have Eskom's financial statements on hand... how many KWh did they sell in that financial period?

Thats quite an investment if you planning on going completely green

Do you hear yourself? You are complaining that you can't afford the costs of the price hikes and then in the same breath saying that the cost of producing the power yourself would cost you even more. Proves the point that Eskom has been undercharging for energy for a number of years.

 

[Pitbull]

The big Eskom scam.

Eskom yesterday said they want 45% for 3 years. Even on the news I heard the news reader saying this is an effective 135% increase.

ARE THEY FK'NG STUPID?

That is more than a 300% increase. Instead of saying Eskom wants a 300% increase over the next 3 years they try and make it sound like it's only 45% a year which adds up to 135%.

So if my electricity = R 800

800+45% = 1160
1160+45% = 1682
1682+45% = R 2438.90

That means that I would have went from R 800 a month to R 2438.90 just a little over 300%

 

[R13...]

In their defense Eskom have always said it is a tripling in tariffs that they're proposing. The arithmetically challenged media are to blame for misrepresenting the numbers. In some reports the media have suggested it is 45% OVER 3 years...

 

[Pitbull]

Ok so we have al heard that Eskom now wants to put the prices up by 45% every year for the next three years. So that's a total increase of 45 x 3 = 135% right?

So if youre paying R700 a month after 3 years you will be paying R1645 per month?
While thats a royal shafting on its own, unfortunately This is not so.

Bottom line.

If you are paying R700 a month for electricity, next year will be +45%
That's R1015. Plus another 45% for that year
Comes to R1471.75. Plus another 45% for that year
After 3 years it comes to R2134 per month.

Thats an increase of just over 200%

This while dumb ass fat cats who got us into this mess get more than 20 million in bonuses and Eskom shows a profit of R974 million for the year of 2008 we are going to have to triple the money we spend on electricity.

WHY?

Bleh I just started a thread about the same thing.

On the news they keep saying 135% over 3 years which is not true.

45% x 3 = just over 300% increase.

 

[davemc]

It gets worse.

Lets say they build the extra power stations to meet this imaginary demand.

The increase in demand for coal will push up the price of coal, which will of course make the 45% increases once again insubstantial.

Also, the costs of transferring the coal to the powerplants will increase as the BEE factor kicks in.

The BEE factor is where competition is eliminated because of government BEE regulation. The BEE companies collude, and buy startup BEE companies out on a daily basis.

Eskom has already made a BEE deal worth R10 billion to repair a small stretch of road they they have completely destroyed by transporting coal on it. Of course, Eskom has destroyed other roads, but, have for some reason chosen to pay for the repair of this specific road because of a "working relationship" between Eskom and a road construction company.

If we give them the money, they will waste it, enrich themselves and hold us hostage.

 

[davemc]

Don't forget to add the municipalities own mark-up which they add every time they can.
The last increase included a 22% increase from the Ekurhuleni municipality for free.

You're looking at a 450% increase.

 

[davemc]

Don't forget to add the municipalities own mark-up which they add every time they can.
The last increase included a 22% increase from the Ekurhuleni municipality for free.

You're looking at a 450% increase.

 

[jay-co]

why dont they stop paying bonuses and put that money to better use.

cause if this happens i will have to start using candles

 

[Th3NaRRoW]

I would just like to point out that it is almost guaranteed that eskom will get their price increase.

They had two options in which to do the price increase it was either something like 150% at once, or 45% per year for 2 or 3 years.

Be glad they didn't decide to increase by 150% this year and then some more next year.

http://www.mg.co.za/article/2009-10-13-eskom-wants-45-hike-for-next-three-years

 

[eltherza]

The arithmetically challenged media are to blame for misrepresenting the numbers.

Yip, I agree - it's the media that are getting the numbers wrong. I think it's meant to case some confusion to buy some time to get it approved [maybe even confuse those that should approve it]

But yes, it's well over 3x the amount. So, who wants to start an alternative energy company with me and make some big cash in the next 5 years?

 

[ToxicBunny]

My problem tho is the residential user accounts for what, maybe 10% of the usage.. yet we're being expected to cover the cost of this infrastructure upgrade....

NERSA need to grow a pair and tell Eskom to fsck off...

 

[Jaaks]

OK so now we need to chat a bit about where is the best and most cost effective option to start generating our own electricity. Even if it is just to run my pc and internet connection. Any ideas?
Will this ever even be viable though? I don't have exact costs but last I looked it would cost around R20k to set up a small solar panel, battery and inverter system. What will the savings be? If my electricity is up to R2500 a month maybe this is good option even if you can only half it you will pay off in around two years or so. Just a thought.

 

[Kokop]

I would just like to point out that it is almost guaranteed that eskom will get their price increase.

They had two options in which to do the price increase it was either something like 150% at once, or 45% per year for 2 or 3 years.

Be glad they didn't decide to increase by 150% this year and then some more next year.

+1

The increase is going to happen.

Now the question is which industries are going to suffer.

Gold/Platinum/aluminium/motor/guvrenmunt ?

Probably none of the above. But, you & I will and shall pay for this.

Not bad, very little increase for the "job creators" but we can pay for that no?

More tax, more harm to the tax base, NHI anyone?:erm:

 

[Gaz{M}]

What I don't get is how they think that everyone who now pays, say, R1000 a month will blindly watch their bill go up to R3000 and do nothing? No ways - everyone is going to do everything they can to reduce their bill. A R2000 a month increase makes a R20 000 solar geyser investment a no brainer, as it will reduce your bill significantly and pay for itself in a year or so. People will buy more energy bulbs, install ceiling insulation and use less electricity to save money.

Eskom is totally stupid if they think they can make 45% more money if they raise rates by 45%. It is not a straight line graph.

 

[Maximus]

We are sitting with some real issues here... ask yourself these questions:

1) Will I be able to afford solar panels when they can easily cost up to R4500 per 175W or R250,000 for a small home?
2) What if I'm renting, will the home owner allow me to fit solar panels to his roof and is it a good idea to install it on someone else's roof when I will eventually move away anyway?
3) Alternatively, how am I going to afford an electricity bill of up to R36,000 per year for a small home in three years time?
4) What happens when the cost of water also goes up, they are already talking of needing R70 billion to improve water supply?

 

[Balstrome]

Ok so we have al heard that Eskom now wants to put the prices up by 45% every year for the next three years. So that's a total increase of 45 x 3 = 135% right?

So if youre paying R700 a month after 3 years you will be paying R1645 per month?
While thats a royal shafting on its own, unfortunately This is not so.

Bottom line.

If you are paying R700 a month for electricity, next year will be +45%
That's R1015. Plus another 45% for that year
Comes to R1471.75. Plus another 45% for that year
After 3 years it comes to R2134 per month.

Thats an increase of just over 200%

This while dumb ass fat cats who got us into this mess get more than 20 million in bonuses and Eskom shows a profit of R974 million for the year of 2008 we are going to have to triple the money we spend on electricity.

WHY?

Oh shut up, stop whining, it's going to happen, and it could be worse.

 

[Kosmik]

This just gets worse and worse.

I own a decent sized flat in a middle suburb. Only have energy saving bulbs, the missus and I work the whole day and all lights are off while we're out.

The only items running are:

ADSL Router
PC but display turned off.
Fridge
Deep Freeze
and yes, Geyser but we meausered turning it off makes small difference.

Last month my Municipal bill was R1050. Now that includes rates but consider this, when I first purchased the flat, I paid R90 for electricity and a R400 levy that covered rates. This was in 2005.

Now we pay R1050 and the R400 levy. I can't even argue about the levy as I'm the chairman and it had to stay at that figure to cover the annual insurance and put some money in the kitty. In 4 years that means that my cost of basic living has increased by a R1000.

 

[PeterCH]

What planet do these idiots live on? Do they not even have a rudimentary understanding of economics? Are they going to try and increase the price of any product that could possibly act as a substitute for electricity? Wasn't the original goal to get people to substitute away from electricity to other energy sources to reduce consumption? If people use less electricity their capex would presumably be lower anyway as they'd need less capacity or does this escape them? What we need is a free market in electricity where any producer can come in and supply to whomever they wish at whatever price. That as well as an end to cross subsidisation, there's no reason why residential customers should subsidise aluminium smelters etc. Why is the price they pay for electricity a function of the aluminium price anyway, its a totally illogical system.

The govt should force ESKOM to invest that R1 bil in profit in new power stations and price reductions. Instead they can't really do that because they're already supplying free power to the electorate.

In SA everything is expensive, because we end up subsidizing the have-nots. The same people who vote these clowns in. The NHI will be similar, you'll pay a bundle to pay for a lot of peoples' TB and HIV care. When you end up having some problem you'll get treated but it will be way below standard anyway.

 

[R13...]

My problem tho is the residential user accounts for what, maybe 10% of the usage.. yet we're being expected to cover the cost of this infrastructure upgrade....

NERSA need to grow a pair and tell Eskom to fsck off...

Nersa grow a pair? You joking! Nersa said around end September that Eskom needs 60% THIS YEAR! Some kind of regulator they are those Nersa clowns!

 

[PeterCH]

Nersa grow a pair? You joking! Nersa said around end September that Eskom needs 60% THIS YEAR! Some kind of regulator they are those Nersa clowns!

NERSA are like ICASA. Same type of guys who are only pretending to regulate. It's all a show for the public to give legitimacy to these increases. As long as ANC to management can have their bonuses and salaries, common people will get ripped off, especially when many of those are not their voters. What are they going to do, vote for the opposition?