Eskom wants 16% tariff increase

Y'all Qaeda

Y'all Qaeda

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http://www.fin24.com/Companies/Industrial/Eskom-wants-16-tariff-increase-20121022

Johannesburg - Power utility Eskom said on Monday it has applied for a 16% annual increase in electricity rates over five years to pay for new plants and buy power from independent producers.


The state-owned utility said the increases, from April 2013 to March 2018, would include a 13% annual hike for its own needs and a 3% rise to support the introduction of independent power producers.


Eskom's Chief Executive Brian Dames said the utility would spend R337bn on capital expenditure over the next five years and would need R78bn over the same period to buy power from independent producers.


Eskom is currently building three new plants - Medupi, Kusile and Ingula - with the first power from them at least a year away.


"We have not included any new build expansion beyond Kusile in our tariff application," Dames said at a media briefing ahead of the announcement. The Kusile plant is expected to be commissioned in 2018/19.


Eskom has been struggling to raise the money it needs to build power plants fast enough to avoid a repeat of a 2008 crisis that forced mines to shut for days and cost Africa's biggest economy billions of dollars in lost output.


Energy-intensive users, including the vital mining industry, have long said that the steep increases were making some of their operations unsustainable. Unions have also protested over the impact of above-inflation hikes on everyday South Africans.


Eskom, once one of the world's lowest-cost electricity producers, has been granted annual increases of 25% in recent years.


Earlier this year President Jacob Zuma asked Eskom to seek options to limit the increases to protect economic growth and the last 25% hike was cut to 16%.


The increases could put additional pressure on consumers, already battling with the fallout of the global economic woes, and mining houses that are battling to contain labour unrest that has brought some of their operations to a standstill.


The rand and government bonds showed little immediate reaction to the news.
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Hate these fscking monpolies...
 
Eskom will get this increase. Remeber how everyone cmplained when they proposed a 38% increase or something? Well they just took 60% increase over 3 years rather than larger increases all at once.

What are we going to do, say no thank you and go where for electricity?
 
If everyone were to somehow get off the grid they would tax us on sunshine and rainwater, guaranteed.
 
Devill said:
E

What are we going to do, say no thank you and go where for electricity?
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The Du Noon way ?

4142451889_81224f53bd_z.jpg


Du+Noon+Elec.jpg
 
Why don't they raise the tarriffs for the big industrial players, IIRC they pay about a 5th of the price that us "normal" folks have to pay
 
Going off the grid is going to make a lot of sense fairly soon it seems.
 
daveza said:
Devill said:
E

What are we going to do, say no thank you and go where for electricity?
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The Du Noon way ?

4142451889_81224f53bd_z.jpg


Du+Noon+Elec.jpg
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these aren't classified as illegal connections. they run through one persons meter and they charge the people that are connected to them at a far higher rate than eskom. eskom is being paid because it runs through one persons meter. in the western cap, losses (including technical losses and illegal connections) is in the 3-5% range, pretty low for any business.
 
Lovely, in a country that has it's own power stations and even mines it's own coal, we are becoming one of the most expensive places for power? On the radio this morning the spokesperson for Eskom was like in the past we were one of the lowest in the world, yeah that was 6 years ago before you started raping us left and right. Now we are up there with first world countries, are they forgetting we are a developing country. There can be no developing without some leniency.
 
these aren't classified as illegal connections
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Du Noon residents who own RDP houses on the edge of the township are doing a brisk business selling illegal electricity to people in the adjacent Doornbach informal settlement.
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HAZARD: A web of illegal electricity cables in Dunoon. Eskom has lost nearly R1bn because of illegal connections.

http://allafrica.com/stories/201107251495.html

Every month Kockjeu Mpiyake pays about R300 in order to run electricity from an illegal connection to a nearby RDP house.

Mpiyake, who lives in Ekuphumleni informal settlement in Du Noon, uses it to lighting and to power his television and radio, but cannot use other electrical appliances such as a washing machine, electric heater or stove.

The RDP house he is illegally connected to supplies electricity to ten other shacks, resulting in frequent power cuts due to overloading.
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He is being ripped off, R300 is quite a lot for only being able to run a TV and lights.
 
I'm gonna have to move jobs a fair bit in the next few years to keep up with those increases.
 

perhaps i should have phrased it differently, eskom doesn't see these as illegal connections as they guy supplying the 10 shacks is paying for all the electricity being used. on a side not eskom is "electrifying" doornbach as we speak. unfortunately infrastructure takes time to erect, not to mention delays with council / municipal / government funding.
 
perhaps i should have phrased it differently, eskom doesn't see these as illegal connections as they guy supplying the 10 shacks is paying for all the electricity being used.
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That makes Eskom sense - as long as it's paid for it's legal....
 
Bizkit87 said:
Why don't they raise the tarriffs for the big industrial players, IIRC they pay about a 5th of the price that us "normal" folks have to pay
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Investors are running away, making it expensive by making this higher will see it decline even more.
High labour + high running cost = lets invest somewhere cheaper.
 
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