Eskom's big challenge

mylesillidge

mylesillidge

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Eskom has a big problem

Eskom faces a significant threat from declining electricity demand in South Africa, with its historically energy-intensive economy shifting towards low-energy services.

This is feedback from energy analyst and managing director of EE Business Intelligence Chris Yelland, who explained that Eskom’s sales are not only under pressure from households and companies switching to alternative energy sources.
 
I think there's one thing that might not have been considered. Where Eskom power is concerned. The heavy industry customers, sad for the overall economy as it is to see them go, tend to have electricity supply contracts with Eskom that feature much lower rates than what the typical private/small business customer tends to pay. Cross-subsidized through sales to private customers.

Therefore, if one of Eskom's issues is the high cost of producing electricity, then the loss of such contract customers should be an alleviating factor. If the electricity was being sold at a loss, then definitely. And the overall per unit profitability should increase.

One could even say that under such conditions the per unit sell price for private customers should theoretically be able to be lowered.

However, I'm speculating here. I know they often paid very little per unit years ago, but that might have changed. It depends on how much, or how little, Eskom was selling power to the heavy industrial clients for today. Part of why they are leaving might have been that the prices they paid were increasing, and that would be almost as financially challenging to them as interrupted power.
 
mylesillidge said:
Eskom has a big problem

Eskom faces a significant threat from declining electricity demand in South Africa, with its historically energy-intensive economy shifting towards low-energy services.

This is feedback from energy analyst and managing director of EE Business Intelligence Chris Yelland, who explained that Eskom’s sales are not only under pressure from households and companies switching to alternative energy sources.
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Rinse and recycle. Great stuff Myles LMAO
 
Bliksis said:
Rinse and recycle. Great stuff Myles LMAO
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No great surprise but trouble (for us, not Eskom and its ANC cadre environment who continually get price increases) comes when declining production overtakes declining demand, both on the downhill run. That is how I read the current load shedding. Nothing good for SA but good for the ANC pockets stuffed with loot from diesel sales.
 
Again no one cares and most hope that Eskom collapses completely, people are tired of a government of morons who only steal, and produce nothing of value.
 
My family can no longer afford Eskom when April hits. There is no way we can have normal lives with this truly insane increase. It cuts our power budget to just enough to run the geyser once a day and our power budget is gone. We are going to have to figure out how to cook food without power.. All forms of entertainment will be mobile based. There is no way I can keep a computer running.

Yes we are on the lower end of the income scale and people will just say get a better job while ignoring how many industries are leaving this country not only due to power but due to land ownership uncertainty. Solar has been regulated to death. The cost of structural inspections COC and the strong possibility that solar users will be penalized made sure that power generation will only remain in the hands of the municipality and government because what ever cost benefit it had will be absorbed by penalties later on. The municipalities have not hesitated to implement things like having to pay a monthly rental fee for our prepaid meter that we had to pay cash for to install. It is ours we paid for it but now it is not.

MyBB should really spell this out. What solar users will face in 2025 and make it clear what costs will be involved and what the legal powers of the municipalities are. That way people can start to demand legislation to protect solar users against it. We cannot play cat and mouse with this stuff anymore. Livelihoods are being effected in the worst way. Imagine keeping our right to generate power hostage? Heavy hitters in Social Media must start to corner the DA and demand protection otherwise it is over for thousands of South Africans. It will be cheaper to live in any other African country then here. That is a big thing. Unless the DA want to see a mass exodus of not only business but voters as well they better get ahead of this because they stand to lose a lot as well.
 
Said it numerous times in the past, they have locked themselves in a death spiral.

They have driven their paying customers away by either failing to provide electricity or by straight up telling them to not use their product (all the ''please use electricity sparingly'' stuff). Their criminal, bordering treasonous, levels of corruption has stripped them of the financial means to invest in the aging, collapsing fleet. The fact that they have driven away many of the people who could pay only serves to amplify the capital shortfall they have when it comes to capex.

Now what they have is a shrinking base of customers they are trying to milk while everything gets worse.

Not to mention the electricity theft, which is something that was allowed to get way out of control.
 
Their little "flex" this weekend was just reminding Nersa and South Africa who controls the switches.
 
Bad Ballie said:
Again no one cares and most hope that Eskom collapses completely, people are tired of a government of morons who only steal, and produce nothing of value.
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I do not hope they collapse, that will leave me in the dark.
 
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