Eskom's De Ruyter slams some municipalities for 'hefty' winter electricity markups

[rvZA]

Eskom CEO André de Ruyter has criticised some municipalities for adding 'hefty" markups to the prices Eskom charge them for bulk electricity.

In an interview with political analyst David Ansara of the Centre For Risk Analysis, De Ruyter gave the example of Sol Plaatje municipality in the Northern Cape, which he said charged some customers 121% more than what Eskom charges it.

Eskom's De Ruyter slams some municipalities for 'hefty' winter electricity markups | Business

'When people complain about the cost of electricity – yes in some cases it is true,' Eskom CEO André de Ruyter told David Ansara of the Centre For Risk Analysis.

www.news24.com

 

[wingnut771]

Hi Andre,

Every municipality in the country charges us a shitload more than what Eskom charges. Durban is R2.50/kWh all year round. How many percent is that Andre?

 

[supersunbird]

STFU Andre, the hefty markups assuredly lessens demand and wastage of what you struggle to supply, stay in your lane and focus on keeping the lights running.

 

[R13...]

STFU Andre, the hefty markups assuredly lessens demand and wastage of what you struggle to supply, stay in your lane and focus on keeping the lights running.

Hefty mark ups = more illegal connectors

 

[Speedster]

Hefty mark ups = more illegal connectors

If the illegal connections are to a municipal connection then the municipality loses, not Eskom.

Either way, electricity has become a cash cow for municipalities who are exactly shining examples of fiscal effeciency.

 

[Paul_S]

If the illegal connections are to a municipal connection then the municipality loses, not Eskom.

Eskom supplies the municipalities and many municipalities across the country are in arrears with regards to paying Eskom for bulk electricity so at the end of the day Eskom is often incurring generation costs which are not being paid for. The municipalities may be losing some revenue but Eskom ends up with the short end of the stick because they have the largest input costs by far.

Example:

Free State Municipal debt March 2022 - Eskom

MONDAY, 28 MARCH 2022: 15 Free State Municipalities and Mangaung Metropolitan owe Eskom R16 billion for services rendered, as at the end of February 2022.

www.eskom.co.za

 

[Speedster]

Eskom supplies the municipalities and many municipalities across the country are in arrears with regards to paying Eskom for bulk electricity so at the end of the day Eskom is often incurring generation costs which are not being paid for. The municipalities may be losing some revenue but Eskom ends up with the short end of the stick because they have the largest input costs by far.

Example:

Free State Municipal debt March 2022 - Eskom

MONDAY, 28 MARCH 2022: 15 Free State Municipalities and Mangaung Metropolitan owe Eskom R16 billion for services rendered, as at the end of February 2022.

www.eskom.co.za

You're conflating two issues. Non-payment to Eskom by municipalities is a different matter to non-payment to municipalities by consumers

 

[wingnut771]

You're conflating two issues. Non-payment to Eskom by municipalities is a different matter to non-payment to municipalities by consumers

Now I know why municipalities mark up the price so high, so the payers can pay for the non payers.

Viva socialism viva
Viva other people’s money viva

 

[RudderVator]

Hi Andre,

Every municipality in the country charges us a shitload more than what Eskom charges. Durban is R2.50/kWh all year round. How many percent is that Andre?

Ya dont say Andre. Pretoria is just as insane. There are no “winter” tarrifs. Just all year round pain…

 

[supersunbird]

Ya dont say Andre. Pretoria is just as insane. There are no “winter” tarrifs. Just all year round pain…

You must stay in another Pretoria than the rest of us then, cause there are definitely winter tariffs. Must more pain than summer pain.

 

[wingnut771]

You must stay in another Pretoria than the rest of us then, cause there are definitely winter tariffs. Must more pain than summer pain.

Can you show us what they are?

 

[RudderVator]

You must stay in another Pretoria than the rest of us then, cause there are definitely winter tariffs. Must more pain than summer pain.

This is the newest one I have. Always lines up with what I get charged. No special Winter tariff. But the yearly increase will be in July.

 

[JustAsk]

It seems that Jesus de Ruyter can't even get this correct...

Fin24's analysis of Sol Plaatje's latest budget statements, meanwhile, appears to show average markups of around 35% for the current year.

In the financial year to date, the municipality spent R531 million on bulk electricity purchases. It has budgeted to earn R717 million from electricity service charges - a difference of 35%

 

[Johnatan56]

It seems that Jesus de Ruyter can't even get this correct...

Do they have free lower tiers?

 

[Speedster]

You must stay in another Pretoria than the rest of us then, cause there are definitely winter tariffs. Must more pain than summer pain.

Nope. Flat rate throughout the year. Although, there is no way they will drop summer tariffs. If they do bring in winter tariffs it'll just definitely be more expensive than the current rates.

 

[Speedster]

It seems that Jesus de Ruyter can't even get this correct...

That includes non-paying customers. It'd be more interesting to find the rate they get charged and the rate they charge to see the markup.

 

[wingnut771]

It seems that Jesus de Ruyter can't even get this correct...

and yet they buy for R1.46 and sell for R3.09.

 

[JustAsk]

That includes non-paying customers. It'd be more interesting to find the rate they get charged and the rate they charge to see the markup.

No it does not...

Due to under-collection, however, it has only collected R612 million.

Jesus de Ruyter's calculations actually ignores non-paying customers...

In response to questions, Eskom said it calculates municipal markups by comparing the tariffs it is allowed to charge municipalities with the tariffs they pass on to customers. All tariffs have to be approved by the National Energy Regulator of South Africa (Nersa).

The percentage difference between the two figures shows how much more a municipality is charging.

 

[supersunbird]

This is the newest one I have. Always lines up with what I get charged. No special Winter tariff. But the yearly increase will be in July.

Guess I am wrong... now to figure out why winter bill is so much higher

 

[Speedster]

Guess I am wrong... now to figure out why winter bill is so much higher

Heaters. More power to heat water (as it enters the geyser colder).