Expect big Eskom electricity price increases

The bottom line is that Eskom sells power to the municipality at 70 cents per unit and the municipality charges me between R1.40 and R1.60 per unit on a sliding scale. And then there are suburbs in the same municipal area that get their power at a directly from Eskom and pay way less. So I don't mind the R1 per unit, but someone should start investigating the profits made by municipalities.
 
All in with the rate,demand side levy and network surcharge I pay about R1.68 per kw/hr
Id love to pay R1.00 so where do they get their figures from.
Why should the municipality make profit on the increased tariff.
Time to put in Solar and then they are going to cry more as even less people use their electricity.
I would also love to get power direct from ESCUM.
 
You pay such a high rate to the municipality for them to maintain infrastructure within the city and to subsidise the non-paying part of the community.
 
LaraC said:
You pay such a high rate to the municipality for them to maintain infrastructure within the city and to subsidise the non-paying part of the community.
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Correct. We are subsidizing two locations in our area. Every time there is an Eskom tariff increase, we also see an increase on our account for the two areas we are subsidizing. So, we are affected twice. Quite unfair.
 
Hitchcock said:
Correct. We are subsidizing two locations in our area. Every time there is an Eskom tariff increase, we also see an increase on our account for the two areas we are subsidizing. So, we are affected twice. Quite unfair.
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Will be interesting to see how it will play out, paying customers are moving to becoming more energy efficient and less reliant on Eskom as a result the incoming cash flow is deceasing yet they are still having to subsidize the non-paying/illegal connections that have no reason to decrease their consumption, the scale is surely to fall over at some point...
 
supersunbird said:
Have fun getting less money as we move over to other energy solutions...
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Government will provide Eskom with the funds they need. You will still pay indirectly whilst you live off the grid.
 
supersunbird said:
Have fun getting less money as we move over to other energy solutions...
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+1

We are busy exploring solar at this time. Generator already set up. Hope to leave the grid in the next couple of years.

Unfortunately, we will still be hit with bills subsidizing those not paying, but, hell, that is better than paying astronomical fees for something we hope and pray we will have today...
 
supersunbird said:
Have fun getting less money as we move over to other energy solutions...
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This is what i am trying to do slowly as well. ESKOM must stop pain these millions to the ass**** called an CEO and start getting this country right. Also the free power that goes over our boarders should stop.

They only think of there pockets and not the people of SA.
 
LaraC said:
Government will provide Eskom with the funds they need. You will still pay indirectly whilst you live off the grid.
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True, via taxes, but that would mean less money for government officials to squander. How long do you think that boat will float?
 
Hitchcock said:
True, via taxes, but that would mean less money for government officials to squander. How long do you think that boat will float?
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It will continue. Have you heard about carbon tax, plug tax and other silly taxes? Expect a Grid free tax soon. :rolleyes:
 
bekdik said:
And then the number of tax payers will decrease as business go bust and people capable of earning move overseas. So that's a good solution.
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An unfortunate side-effect of our Governments poor planning.
 
And will BHP still be paying 20 odd cents(think it was 24 or something, correct me if I'm wrong) or are Eskom going to charge them the same rate as us(or at least bring it up to cost price)? At the moment we not only cover the cost of the thieving bastards, but also the cost of the multi billion dollar smelters paying less than half of cost.

“We don’t have the right tariff – in that it does not allow us to recover all our cost,” Matona said.

Stop selling your product to smelters at below cost and you won't have a problem...
 
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ellyally said:
And will BHP still be paying 20 odd cents(think it was 24 or something, correct me if I'm wrong) or are Eskom going to charge them the same rate as us(or at least bring it up to cost price)? At the moment we not only cover the cost of the thieving bastards, but also the cost of the multi billion dollar smelters paying less than half of cost.

“We don’t have the right tariff – in that it does not allow us to recover all our cost,” Matona said.

Stop selling your product to smelters at below cost and you won't have a problem...
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The contract with Billiton will expire in 2020 after a term of twenty five years.
The contract was signed when South Africa had abundant power reserves and growth in industry was needed.
If Government maintained and build new power stations as it should have the unit price of electricity would not have risen so drastically. Other factors such as a weak rand and constant downgrading of Eskom credit rating also play a role.
 
And the homelands and the neighboring countries... Cut them off too. But the zumabuddies will not be happy with that, based on what they were promised in return for the support they gave during "the struggle".
 
What's going to eventually happen is that everyone who can (i.e. middle-class consumers and businesses) will start investing in their own solar electricity generation and will go completely off-grid. This is going to completely decimate the revenue streams for municipalities who cross-subsidise their services with the profits they make from reselling electricity from Eskom.

Eskom is in the crazy position of being the only company in South Africa who is actively discouraging people from buying its product. The problem is that when (if?) Eskom ever gets its act together and has enough generating capacity it's going to discover that it no longer has any paying customers left.
 
deweyzeph said:
The problem is that when (if?) Eskom ever gets its act together and has enough generating capacity it's going to discover that it no longer has any paying customers left.
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Yep, actually just had this discussion with my mother. I had never actually thought of it like this. As you have stated, she said at the rate we are all going with our gas this and solar that, by the time(if) they get everything fixed and up and running they won't have many customers left (other than the thieves and below cost corps). We'll all be used to doing it ourselves by that point so no real reason to go back to them.
 
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