Price of electricity in South Africa should be lower than 50c per kWh

lsheed_cn

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Sep 14, 2008
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3,067
Actually, I think its fine.

Keep it expensive. The poor can't afford the polluting electricity (we're mostly coal), and at those prices, the moderately well off will find it worthwhile to skip the grid altogether.

Would lower theft dramatically, as Eskom could only afford to keep the paying customers online. No more subsidies unwritten or not.
ANC is going to have to head that route given the cashcow has an escape route via Solar.

Give it 5-10 years and we'll see how much "free" electricity the masses get.
 
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Milano

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Feb 7, 2004
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The price of 'transformation'.
Not bad when you divide by eleventy. It's a pretty good deal when you open your eyes to the reality that your bill is for your house plus ten houses in the township.
 

The Voice

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Just one word needed to indicate why SA will never have cheap, sustainable energy:

Monopoly
 

Seriously

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Nov 29, 2012
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Yeah I'm @ R1.85 and it's not prepaid so that rate from the very start :(
Sad indeed. Mine is prepaid but the first purchase in month is only 46.21Kwh for R100 thereafter 56.7Kwh. Sad to say.
 

HavocXphere

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Oct 19, 2007
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Hate to say it but they're wrong.

Yes current price should perhaps be 50c if you had freshly installed modern generation capacity, distribution capacity and a population of faithful paying consumers.

But SA has like 20 years of infra backlog to catch up on. Everything from top to bottom is farked...so you need a hell of a lot more money.

Eskom is being managed terribly too sure, but the reality is that you can't expect outdated old infra to provide cutting edge price efficiency. It just doesn't work that way & frankly anyone that can't see that is an idiot.

Best SA can hope for is pay the piper for past mistakes & manage Eskom well going forward. Even that ideal outcome results in prices *north* of current pricing...not 50c.
 

mypetcow

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Oct 1, 2006
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'Should' is a dangerous word. The article doesn't mention inflation or the change in exchange rate over the years. While there is definitely corruption at play it's not the only factor. Construction of new power stations or replacement parts for existing ones are exposed to exchange rate risk. Not only that but depending on the country risk, Eskom's borrowing rates are affected. What I'm trying to say is that while the current electricity price is high and while one could argue it should be at R0.50/kWh, it will not likely every go back down to that value simply form an economic point of view. Just as the price for cars won't reach the 2007 price again, electricity costs are bound to increase.
The only way to slow the impact of the rise in electricity cost is to install solar panels at home and for companies to install solar at the office. While wind my seem better because it works at night, you can't go putting a wind turbine in your garden. :D
 

Gaz{M}

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Feb 9, 2005
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86c is the average selling price of electricity from Eskom to municipalities and all other customers. Then the muni's add about R1 to that price or more depending on your tariff plan.

At best, he means to say that electricity would be around 36c a kwh cheaper than what you are paying at the moment.
 

Swa

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May 4, 2012
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Blom argued that if Eskom was run efficiently, the electricity price would not be the current 86c per kWh.
Then wtf are we paying more than double that in industrial areas? Oh wait, don't answer that... :rolleyes:
 
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