Something fishy....Eskom

[Deenem]

So, it's a quiet work day, so I'm bust browsing Eskoms website and I find this page.

http://www.eskom.co.za/live/content.php?Item_ID=5981

all about Eskom's building plans. By my reckoning, between the 2 open cycle gas turbines and the 3 mothballed stations that are being returned to service Eskom will have added 4000 MW of capacity between now and next year April. Current capacity is 38000MW.

In other words, by next April they will have increased capacity by 10%!

So where is the shortage coming from?

Can't help thinking that load shedding is either a cover for some other problem (no coal ?) or just a way of scaring people into saving power because there might be a problem in the future.

 

[Robin Hood]

Can't help thinking that load shedding is either a cover for some other problem (no coal ?) or just a way of scaring people into saving power because there might be a problem in the future.

Trust me, there IS coal. Mines just need to be re-opened

 

[andres101]

Did you notice that the power cuts was just before the budget speech? I think Eskom just ensured that they received adequate funding.

 

[rph72]

We are being lied to. Why did their exports increase during the last round of load shedding? We are being held to ransom.

 

[BTTB]

Did you notice that the power cuts was just before the budget speech? I think Eskom just ensured that they received adequate funding.

I think you may be right? Plus an excuse to charge us more.
Government Ministers sit in Parliament sucking up air, but haven't the foggiest idea how to grapple with the Power Capacity Issues, so unless you use some form of hyped media reporting, scare tactics or mass hysteria they will just plod along like they always do.
At the time of the new Budget Speech it was confirmed that Billions still lay unspent from last years Budget which confirms the inadequacies of the people running the country.

What gets me really pissed off is Eskom that targets the Residential Users and Small Businesses with Rate Hikes out of kilter with inflation (think of the 18% they asked for) citing future Capital Projects, when these users only consume about 14% off the National Grid. It is the big Mining Houses and the Exported Capacity that consumes the bulk of Eskom's generated power and from what I have read they get a considerable discount.

Where have all the dividends that Eskom has made over the decades gone to?

Here is another Public Utility made with Public's Money that in the end just become another Company out there squeezing the consumer for what they can get out of us. Think Telkom, think SASOL, think Municipalities.
Yet The Minister has great delight in telling The Media that South Africans have the cheapest electricity in the world (with a pinch of salt) and they are basically going to change that situation by hiking tariffs. In another country that person would have been fired for a remark like that added to the fact that Government is 100% to blame for the current situation.

 

[BTTB]

Price Disparity

It is the big Mining Houses and the Exported Capacity that consumes the bulk of Eskom's generated power and from what I have read they get a considerable discount.

From The Argus 8 March 2008 Front Page Article entitled "Eskom exports went up as country's power was down.".

Foreign Buyers - 11.5 cents per kWh
SA Industry - 16 cents per kWh
Local Municipalities - 16.9 cents per kWh
I/We pay -32.21 cents per kWh (Source: My December Electricity Bill)

Local Authorities nearly double up on the price they get from Eskom, yet we must get a 14% increase, when it is quite clear that SA Industry and especially Foreign Buyers are the ones that should be taking the Lion's Share of the price hikes needed to Fund Eskom's expansion plans.

I reiterate my Statement that Government alone are the biggest contributors to Inflation in this country. Government wants to bring inflation below 6%, but they are the one's making it higher.
The recent depreciation in the Rand is also the result of the Eskom Crisis.
So expect, unless something happens in the interim, for another Interest Rate Hike sooner than later.

 

[daveza]

Apparently the power stations have 5 days of coal available.

Isn't this living a little close to the edge ?

 

[Piepalook]

From The Argus 8 March 2008 Front Page Article entitled "Eskom exports went up as country's power was down.".

Foreign Buyers - 11.5 cents per kWh
SA Industry - 16 cents per kWh
Local Municipalities - 16.9 cents per kWh
I/We pay -32.21 cents per kWh (Source: My December Electricity Bill)

Local Authorities nearly double up on the price they get from Eskom, yet we must get a 14% increase, when it is quite clear that SA Industry and especially Foreign Buyers are the ones that should be taking the Lion's Share of the price hikes needed to Fund Eskom's expansion plans.

I reiterate my Statement that Government alone are the biggest contributors to Inflation in this country. Government wants to bring inflation below 6%, but they are the one's making it higher.
The recent depreciation in the Rand is also the result of the Eskom Crisis.
So expect, unless something happens in the interim, for another Interest Rate Hike sooner than later.

We currently pay R0.50 per kilowatt hour.

Our municipality buys electricity from escom at the standard rate.

The municipalities sees this as a scource of income,therefore rates we buy electricty at differs from municipality to municipality.

 

[BTTB]

We currently pay R0.50 per kilowatt hour.

Our municipality buys electricity from escom at the standard rate.

The municipalities sees this as a scource of income,therefore rates we buy electricty at differs from municipality to municipality.

You are correct.
Throw Water into that equation as well.
Rates are Valuation Based.

I will make a point of checking this months Electricity Bill to see if there was not perhaps a hike in the tariff as Eskom did get that 14% not so long ago.

 

[Piepalook]

You are correct.
Throw Water into that equation as well.
Rates are Valuation Based.

I will make a point of checking this months Electricity Bill to see if there was not perhaps a hike in the tariff as Eskom did get that 14% not so long ago.

I would also like to see if they are going to add the 14% to the R0.50 we are paying now,or to the R0.16 they are paying to Eskom.

My guess would be they will add it to the R0.50.

 

[BTTB]

I would also like to see if they are going to add the 14% to the R0.50 we are paying now,or to the R0.16 they are paying to Eskom.

My guess would be they will add it to the R0.50.

Good point.
Now that we have taken recognizance of the base price before the increase we can compare notes later to see if the Local Authorities compound Eskom's Tariff increase.

 

[Moederloos]

We pay 43c / KWh

Government is determined to bring Zim inflation to SA. Everything they do is aimed at making themselves richer at our expense.

 

[BTTB]

The Cost of Living in South Africa is going to skyrocket

We pay 43c / KWh

Government is determined to bring Zim inflation to SA. Everything they do is aimed at making themselves richer at our expense.

Here in itself is a whole can of worms.
I wonder if Carte Blanche or someone would care to investigate how any Company that can buy something for 16 cents then charge it out at 43 or 50 cents, especially when it is The Local Authorities that are supposed to be looking after us and not profiteering.
269 and 313% mark-up respectively for Piepalook and Moederloos's Electricity Billing area. That is quite staggering.
I can only assume that Municipalities need to recover costs for infrastructure, upkeep and manpower, but do they need those staggering Margins.

To add, did anyone notice that Manuel added more Levies and Taxes to the Fuel Price in this years Budget. With a 60 odd cents price hike on petrol this month and I am reading of another 80 cents price hike for next month, this is not funny any more.

Double Wammy. Triple Wammy. Everything is going to go up. Expect more Labour Action this year for Living Wages. The Eskom Saga is going to cost us more than we anticipated.
Many analysts have downgraded our growth for this year to 3% and below. PPI came out this week at over 10%.
I am afraid Trevor's Honeymoon is over.

 

[Moederloos]

Here in itself is a whole can of worms.
I wonder if Carte Blanche or someone would care to investigate how any Company that can buy something for 16 cents then charge it out at 43 or 50 cents, especially when it is The Local Authorities that are supposed to be looking after us and not profiteering.
269 and 313% mark-up respectively for Piepalook and Moederloos's Electricity Billing area. That is quite staggering.
I can only assume that Municipalities need to recover costs for infrastructure, upkeep and manpower, but do they need those staggering Margins.

To add, did anyone notice that Manuel added more Levies and Taxes to the Fuel Price in this years Budget. With a 60 odd cents price hike on petrol this month and I am reading of another 80 cents price hike for next month, this is not funny any more.

Double Wammy. Triple Wammy. Everything is going to go up. Expect more Labour Action this year for Living Wages. The Eskom Saga is going to cost us more than we anticipated.
Many analysts have downgraded our growth for this year to 3% and below. PPI came out this week at over 10%.
I am afraid Trevor's Honeymoon is over.

I predicted elsewhere inflation at 18.2% by year end. It was a bit of off-colour humour meant to stir some debate, but I am wondering just how "right" I will be proven.

 

[Piepalook]

I predicted elsewhere inflation at 18.2% by year end. It was a bit of off-colour humour meant to stir some debate, but I am wondering just how "right" I will be proven.

At the end of next year we will be paying R20 / litre for fuel.

Time to buy bicycles.

 

[Moederloos]

At the end of next year we will be paying R20 / litre for fuel.

Time to buy bicycles.

Lol - optimist!

Seriously, at R1 per 6 weeks, we will add R10 in 60 weeks, or 14 months.
So, by June next year it will be R20.

Of course, if the rand loses ground faster, that will accelerate even more.