What's really going on.....
WELL DONE ANC!!! WELL DONE !!! In case you were wondering where the electricity is going, and why we have loadshitting - apart from the wholesale stealing, sabotage and fraud, here are some other facts:
There is a mining company named South32 that owns the aluminium smelter at Bayside in Richards Bay. Aluminium ore (bauxite) is mined in northern Australia, brought to South Africa, smelted here, and then the final aluminium is exported.
South32 pays only 17c per unit(kWh) of electricity from Eskom. Yes, 17c per kWh!
NERSA's recent collective 31.9% electricity price increase will make each of us end-users pay R3.15 per kWh by next year, but this won't apply to South32. South32 entered into seperate power supply agreements with Eskom and NERSA decisions don't apply to South32.
In 2021, under direct instruction from the minister of energy, South32 renewed its power supply agreements with Eskom and extended this agreement for 10 years until 2031 - at the same rate!
So as electricity prices have increased by 300% for us over the past five years and while we can expect more of these hefty price increases from NERSA over the next 10 years, they won't apply to South32. South32 will continue paying the 17c flat rate until 2031.
South32 is also EXEMPTEDT from loadsitting. That's right - they have ZERO loadshedding, because their smelting processes need to operate 24/7/365.
South32 Hillside smelter is the biggest smelter in the Southern Hemisphere and uses 5.5% of Eskom's total energy generation - equivalent to the total energy generation capacity of Eskom's single nuclear plant Koeberg. South32 Hillside smelter is the biggest single electricity user in the country.
But wait, there's another aspect - South32 also has the Mozal Smelter 20 km outside Maputo in Mozambique AND Eskom exports electricity to this smelter. The Mozal Smelter uses 4% of the total energy generation capacity of Eskom. So jointly, South32 Hillside and Mozal smelters use more than 9% of Eskom energy generation capacity!
Eskom's energy generation mix is 85% coal and energy generation from coal costs Eskom 42c kWh, so the discounted tariff prices of South32 costs Eskom R11 billion each year.
Eskom recovers all that money from each of us with every kWh we buy, that's why South32 has contributed 128% to the electricity price increases over the last decade for the entire country.
If South32 had to shut it's smelters today, that would reduce the electricity price cost we pay by nearly half and the generation capacity available to Eskom would end loadshitting today.
Wait, it doesn't end there - over the past 30 years South32 has been an Eskom coal supplier supplying Eskom with 30 million tonnes of coal per year at R416 per tonne, despite the NERSA recommended rate being R350 per tonne. Such exorbitant coal costs have also contributed to the high electricity price costs to us.
In essence - South32 has been robbing us through its coal mining operations' high cost of coal purchase price to Eskom, while on the other hand we also subsidize its smelters.
A BIG BIG decades old scam!
South32 is an Australian company robbing us blind, with the blessing and encouragement of the highest offices of ANC government, trade unions and our tax authorities which are just too happy to collect their slice of the revenue.
PS
Need Source.
WELL DONE ANC!!! WELL DONE !!! In case you were wondering where the electricity is going, and why we have loadshitting - apart from the wholesale stealing, sabotage and fraud, here are some other facts:
There is a mining company named South32 that owns the aluminium smelter at Bayside in Richards Bay. Aluminium ore (bauxite) is mined in northern Australia, brought to South Africa, smelted here, and then the final aluminium is exported.
South32 pays only 17c per unit(kWh) of electricity from Eskom. Yes, 17c per kWh!
NERSA's recent collective 31.9% electricity price increase will make each of us end-users pay R3.15 per kWh by next year, but this won't apply to South32. South32 entered into seperate power supply agreements with Eskom and NERSA decisions don't apply to South32.
In 2021, under direct instruction from the minister of energy, South32 renewed its power supply agreements with Eskom and extended this agreement for 10 years until 2031 - at the same rate!
So as electricity prices have increased by 300% for us over the past five years and while we can expect more of these hefty price increases from NERSA over the next 10 years, they won't apply to South32. South32 will continue paying the 17c flat rate until 2031.
South32 is also EXEMPTEDT from loadsitting. That's right - they have ZERO loadshedding, because their smelting processes need to operate 24/7/365.
South32 Hillside smelter is the biggest smelter in the Southern Hemisphere and uses 5.5% of Eskom's total energy generation - equivalent to the total energy generation capacity of Eskom's single nuclear plant Koeberg. South32 Hillside smelter is the biggest single electricity user in the country.
But wait, there's another aspect - South32 also has the Mozal Smelter 20 km outside Maputo in Mozambique AND Eskom exports electricity to this smelter. The Mozal Smelter uses 4% of the total energy generation capacity of Eskom. So jointly, South32 Hillside and Mozal smelters use more than 9% of Eskom energy generation capacity!
Eskom's energy generation mix is 85% coal and energy generation from coal costs Eskom 42c kWh, so the discounted tariff prices of South32 costs Eskom R11 billion each year.
Eskom recovers all that money from each of us with every kWh we buy, that's why South32 has contributed 128% to the electricity price increases over the last decade for the entire country.
If South32 had to shut it's smelters today, that would reduce the electricity price cost we pay by nearly half and the generation capacity available to Eskom would end loadshitting today.
Wait, it doesn't end there - over the past 30 years South32 has been an Eskom coal supplier supplying Eskom with 30 million tonnes of coal per year at R416 per tonne, despite the NERSA recommended rate being R350 per tonne. Such exorbitant coal costs have also contributed to the high electricity price costs to us.
In essence - South32 has been robbing us through its coal mining operations' high cost of coal purchase price to Eskom, while on the other hand we also subsidize its smelters.
A BIG BIG decades old scam!
South32 is an Australian company robbing us blind, with the blessing and encouragement of the highest offices of ANC government, trade unions and our tax authorities which are just too happy to collect their slice of the revenue.
PS
Need Source.
