Hi Chopsky,
There is a pattern to this>
1. Media reports telling the public of potential Load Shedding come 2009
2. Load Shedding
3. Application to NERSA for price hikes of 50% plus
4. 6 months later new tariffs are implemented
5. No further Load Shedding
6. Repeat point 1 - 5 end of 2009 for 2010.
7. Repeat point 1 - 5 end of 2010 for 2011
There was obviously a problem as far as capacity constraints go, but how much of the so called issues we are having is geared towards hiking prices?
Eskom want to triple tariffs as seen in this article
here, but must get past NERSA and the many other consumer bodies, economists and the rest. They need to motivate their unusual request for prices out of kilter with inflation and to achieve this we have to feel the pain.
Just a thought. How many Companies do you know can increase tariffs in the present to help pay for future expansion needs. Eskom can and as you so rightly state they are a Monopoly.
Government is wholly to blame for the mess as they could have built more Power Station Capacity when things were a lot cheaper 10 years ago, but like then they rather kept the money for other "uses" and now they choose to make the consumer pay for expansion through higher tariffs when essentially Government should and could be taking the Lion Share for Expansion needs from Tax Revenue like it was always the case in the past.
Basically what Eskom are doing is using the cash flow of Electricity Accounts to fund Capital Expansion when this should come out of Long Term Capital.
E.g. It is like making extensions to a factory out of a Company's Overdraft when essentially the money should come out of a Mortgage Bond.
I think the average man in the street is looking for ways to cut back on his Electricity Bill, the ones that pay of course. But many big businesses must be suffering especially the ones in Manufacturing as the Input Costs will weigh heavily with the steady big hikes in Electricity Tariffs. Businesses cannot simply cut back if they need Electricity for production and one must spare a thought now for the beleaguered Mining Houses who not only are suffering because of the huge fall in commodity prices, now have to pick up extra tabs for Electricity.
Just goes to show you how Politicians can cost a country. Give the running of a country over to properly trained and qualified managers and then we may see a difference in our lives.
Regards,
BTTB.