Mantashe: The economy is going to collapse if electricity remains this expensive

[Jopie Fourie]

Government is pushing coal producers to cut prices to help save Eskom, the indebted power utility that threatens to unravel the country’s finances.

“At these prices of electricity, this economy is going to collapse,” Mineral and Energy Resources Minister Gwede Mantashe said Thursday at mining conference in Johannesburg. “You have got to reduce the prices -- what we are saying is coal producers must contribute in ensuring that is actually addressed.”

Eskom, which provides about 95% of South Africa’s electricity, relies on coal to generate most of its power. Several ministries last week approached both coal and renewable energy producers to ask for lower-cost supplies as the government scrambles to rescue the unprofitable state-owned utility.

“We are talking to them, we are not instructing them,” Mantashe said. “The steps are, one you talk to coal producers, they make a commitment, talk to renewables, they make a commitment.”

Mantashe: The economy is going to collapse if electricity remains this expensive | Business

Government is pushing coal producers to cut prices to help save struggling power utility Eskom.

www.fin24.com

 

[daveza]

Coal prices must come down, unions demand huge wage increases.......

 

[Jopie Fourie]

The South African economy is going to collapse, irrelevant of electricity prices and this collapse will no longer be stopped. The main reasons for the collapse of the economy will be ANC policy and leadership, including all the stupid laws they brought in since 1994 and their socialist ideologies. They should get used to this and rather start focusing on how they will deal with the masses once the collapse occurs. Focusing on the economy is going to be a lost cause for the ANC.

 

[The Voice]

#ImStaying

 

[ponder]

But what about those inflated zupta coal supply contracts entered into?

 

[TheChamp]

The South African economy is going to collapse, irrelevant of electricity prices and this collapse will no longer be stopped. The main reasons for the collapse of the economy will be ANC policy and leadership, including all the stupid laws they brought in since 1994 and their socialist ideologies. They should get used to this and rather start focusing on how they will deal with the masses once the collapse occurs. Focusing on the economy is going to be a lost cause for the ANC.

In that case we should all start focusing on how to deal with the masses, I doubt they would be only concerned about the ANC.

 

[spiff]

You have got to reduce the prices

you don't farking say

 

[ToxicBunny]

Uncle Gweezy is not really wrong... but if I was a Coal Producer I would have straight up told Gweezy to GFY, sort Eskom out and then we can discuss the cost of coal.

 

[Pilgrim]

Even if the coal supplies drop their prices, what are the chances of eksdom passing on the savings to their customers?

Pull the other one...

 

[ShaunSA]

If I was the coal producers I would tell them to eff off.

Gweezy and his bunch of merry men can assume full responsibility for all the schit that happens.

 

[R13...]

Uncle Gweezy is not really wrong... but if I was a Coal Producer I would have straight up told Gweezy to GFY, sort Eskom out and then we can discuss the cost of coal.

To be fair some of the emerging coal producers have contracts that are ridiculous. And add to the fact that they're trucking in coal in some places where they stiffed cost+ mines in the name of equity but it was really corrupt relationships as those mines are equity compliant.
- There are many efficiency gains to be had by sorting out their corrupt supply chain practices
- Make clear to workers that they can take a shave or go down with the monolith (I realise they will not retrench)

 

[Temujin]

Right, so you're going to reduce the price of electricity when coal prices come down... sure, let me get my flying pig hunting gear ready

 

[ToxicBunny]

To be fair some of the emerging coal producers have contracts that are ridiculous. And add to the fact that they're trucking in coal in some places where they stiffed cost+ mines in the name of equity but it was really corrupt relationships as those mines are equity compliant.
- There are many efficiency gains to be had by sorting out their corrupt supply chain practices
- Make clear to workers that they can take a shave or go down with the monolith (I realise they will not retrench)

Oh of course there are issue with the entire Supply Chain, but those contracts that are massively inflated due to corruption have an avenue of being corrected through standard legal practices. Expecting mines that haven't engaged in gross corruption at the expense of the South African economy to cut their prices whilst Eskom is still a steaming pile of corruption and incompetence is mind boggling though.

 

[Death_By_Ebola]

Mantashe: The economy is going to collapse if electricity remains this expensive

 

[rambo919]

erm..... isn't the economy gonna collapse no matter what happens?

 

[SoldierMan]

Shifting deck chairs on a sinking Titanic. It's what the ANC does best.

 

[GhostSixFour]

But what about those inflated zupta coal supply contracts entered into?

Why hasn't these contracts been declared null and void yet?

 

[ProfA]

media attention whoring an attention whore with a meaningless article that does not mean a thing.

 

[ɹǝuuᴉM]

The South African economy is going to collapse, irrelevant of electricity prices and this collapse will no longer be stopped. The main reasons for the collapse of the economy will be ANC policy and leadership, including all the stupid laws they brought in since 1994 and their socialist ideologies. They should get used to this and rather start focusing on how they will deal with the masses once the collapse occurs. Focusing on the economy is going to be a lost cause for the ANC.

Nigeria has lots of oil but no petrol. South Africa has lots of coal but no power. Racist, Affirmative Action policies has killed South Africa just like that. You were warned but did not listen. Now live with it.

 

[w@nted]

Maybe Soweto residents should start paying for their electricity?