Eskom wants 53% tariff hike

Butt cover 101 - they ask for the impossible, they know they will not get it, so when things go wrong they have their excuse - so it looks like it is about to fall apart
 
another scam nailed as it tried to get out the door - maybe they think no one will work it out, LOL
 
Eskom had said it wanted the figure revised because of "increased primary energy costs" and "accelerated demand side management" costs.
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Not to mention their bonuses that they hope to keep intact.
 
Amazingly, loadshedding started just before budget-time and stopped for a month after promises from Trevor. Now it starts again just before this request for a 53% rate hike request. How "genuine" are the "technical" problems experienced now?
 
Just an intesting side note.....

South Africa's current cost of electricity 22c/kWh (which includes the recent increase from 19c)
Next lowest cost is Canada at 35c/kWh

So if we factor in a 53% increase we would still be the cheapest!

As we identified in our previous Electricity
Update (Q3.07), there is a pressing need for higher electricity
prices, both domestically and internationally. While SA’s recently
agreed electricity tariff increase brings the price from 19c/kWh to
22c/kWh (plus an additional 2c/kWh levy), the next lowest cost
producer of electricity is Canada, at around 35c/kWh. Eskom’s
peak reserve margin has fallen to 8.0%, which Eskom says means
a 2% chance of load shedding a year – or about 7.8 days a year
(15% is the international benchmark). Eskom urgently needs to
hike its prices further to provide funding for its capacity expansion
programme and estimates that a 20% increase per annum for the
next five years is required. The small weighting of electricity prices
in CPIX means that the actual, direct impact on CPIX inflation
would not be substantial, although still significant (see figure 4).
Treasury specifically says prices should have increased by
6c/kWh, to 25c/kWh (instead of to 22c/kWh) to correctly reflect the
marginal cost of supplying electricity (the 2c/kWh levy is currently
to be paid to treasury), and by 15c/kWh to 34c/kWh to reflect the
future cost of supplying additional electricity (see figure 3). By 2011
the marginal cost will be 43c/kWh, currently the required cost for
the private sector to enter the electricity generation sector is about
40c/kWh.
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LancelotSA said:
Just an intesting side note.....

South Africa's current cost of electricity 22c/kWh (which includes the recent increase from 19c)
Next lowest cost is Canada at 35c/kWh

So if we factor in a 53% increase we would still be the cheapest!
Click to expand...

Yeah so?

Thats nothing to be positive about
 
boramk said:
Yeah so?

Thats nothing to be positive about
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Geez you guys can harp on... get over yourself!

Besides if you would really like to be pathetic and bring my sig into every post of mine then I think having the cheapest electricity in the world is something to be positive about!
 
LancelotSA said:
Besides if you would really like to be pathetic and bring my sig into every post of mine then I think having the cheapest electricity in the world is something to be positive about!
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It would have been cheaper if say the current government wern't here and if say the avoidable electricity crisis was avoided
 
marine1 said:
Why dont you e mail Eskom and let them know :rolleyes:
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No need, I am sure they are aware of things like this already unlike the general public who would just assume that our electricity would now be ridiculously overpriced after a 53% increase....

The one thing Eskom are guilty of is not increasing the cost of our electricity by enough over the years. I suppose they were wanting to encourage investment by keeping power costs low... but that has backfired.
 
LancelotSA said:
Just an intesting side note.....

South Africa's current cost of electricity 22c/kWh (which includes the recent increase from 19c)
Next lowest cost is Canada at 35c/kWh

So if we factor in a 53% increase we would still be the cheapest!
Click to expand...

If you take per capita income into account for the two countries, would electricity still be cheap in SA?
 
pimal3 said:
If you take per capita income into account for the two countries, would electricity still be cheap in SA?
Click to expand...

I covered that extensively in another thread which showed how inefficiently we use electricity in this country. I am not going to cover it again here.
 
LancelotSA said:
No need, I am sure they are aware of things like this already unlike the general public who would just assume that our electricity would now be ridiculously overpriced after a 53% increase....

The one thing Eskom are guilty of is not increasing the cost of our electricity by enough over the years. I suppose they were wanting to encourage investment by keeping power costs low... but that has backfired.
Click to expand...

Well, a gradual year-on-year increase would have prevented this problem. But yet again this country and Eskom lacked the foresight. :(

What about a 14% increase year-on-year for the next 3 years instead?
 
LancelotSA said:
Just an intesting side note.....

South Africa's current cost of electricity 22c/kWh (which includes the recent increase from 19c)
Next lowest cost is Canada at 35c/kWh

So if we factor in a 53% increase we would still be the cheapest!
Click to expand...

Yet we sell it to other African countries at 11c/kWh. So, South Africa couldn't possible be the lowest? :confused:
 
LancelotSA said:
The one thing Eskom are guilty of is not increasing the cost of our electricity by enough over the years. I suppose they were wanting to encourage investment by keeping power costs low... but that has backfired.
Click to expand...

I am so sorry I read that because that is just stupid
 
I quoted half of an article earlier but now feel that perhaps the other half will be of interest.

We all know Eskom now has to build and build fast. That takes money. Now they have three ways in which to raise the needed money. They can issue bonds, get it from government or get it themselves by increasing the cost of power.

The extract below explains each of these....

Previously we wrote ‘rising electricity prices is a global trend and
SA will not be able to escape these costs – unless government
(Eskom’s shareholder) steps in with alternate funding’. Government
has now provided a R60bn subordinated shareholder loan, which
will reduce the amount Eskom needs to raise in the bond market in
the next few years, and also alleviate the pressure for further credit
rating downgrades. However, Eskom’s projected future capacity
requirements indicate that it will need to institute substantial, further
tariff hikes on an ongoing basis – as it is still questionable whether
markets will be able to absorb the quantity of paper Eskom still
plans to issue in the long-term, without further credit rating
downgrades.
Click to expand...

Boramk... would you have the decency to explain your last comment?
 
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