Friday, May 23, 2008

A screw by any other name is still a screw

Eskom and the ANC gubbermunt will try a different tactic.

A "gradual phasing in of the price hike" which still means you are being shafted, only slower.

You are paying for the monumental stuff up of Mbeggi and his crew and Eskom.

Remember that when you put a cross in next year's election.

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Eskom will agree to a gradual phasing in of the 53% price hike it wants - if Government uses its tax rands to give it a cash injection upfront.

Eskom agrees with the recent energy summit proposal to gradually increase its prices, its chief executive Jacob Maroga said on Friday.

The power utility was “by and large” in agreement with the summit’s proposals to increase prices gradually instead of an immediate massive hike, he said at the National Energy Regulator of SA (Nersa)’s public hearings on the power utility’s application for a 53% increase.

However, he said the utility was still asking Nersa for the 53% hike because it did not yet know how much government, as its sole shareholder, would inject into it.

“We have got a revenue requirement that needs to be satisfied,” he said. “We cannot speak on what we expect until the shareholder himself speaks about how much he is going to inject.”

Eskom’s chief financial officer Bongani Nqwababa said that if prices were to be “smoothed in”, up-front funding would be required.

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