Wednesday, October 14, 2009

Eskom wants electricity prices to TRIPLE

I believe the bozos running this parastatal are still receiving huge bonuses and payouts. Nice. Apparently another 45% hike on top of the 59% increase last year is also doing it "smoothly". More like, "bend over so we can shove another pineapple up your arse".

AFP- South Africa's energy giant Eskom pushed for a 45 percent annual tariff rise over three years, warning that consumers would otherwise face a 146 percent hike early next year.

"Let's do the hike over three years, we'll smooth it by 45 percent over the next three years," said Eskom chief executive Jacob Maroga told a media briefing, the SAPA news agency reported.

Eskom is angling to triple the electricity price from around 33 cents per kilowatt hour (kWh) to 99 cents (13 US cents, less than 10 euro cents).

The troubled supplier has been granted two tariff hikes that average 59 percent since last year, to finance the building of new power stations in order to meet the increasing demand for electricity.

Countrywide blackouts last January showed the strains on the ageing electricity infrastructure, forcing key industries to shut down, amid increasing demands during the economic boom after the end of apartheid.

Eskom has filed its latest tariff request to the National Energy Regulator of South Africa.

"This application that we have made to Nersa serves as a transition to financial stability, it's going to be painful but it's an unavoidable adjustment for us to secure our future," said Maroga.

Eskom's preferred phased increase will raise prices to 99 cents per kWh with Eskom still facing a 30 billion rand cash shortfall.

The one-off increase would see a 146 percent hike in the first year from 33 cent to 83 cent per kilowatt hour (kWh) in the first year, followed by consecutive 12 percent rises in the second and third year, he said.

Maroga said the company was planning to increase free basic electricity increase from 50 kWh to 70kWh per month.

The firm is currently building a 4,800 megawatt coal-powered power plant to boost its capacity.

The first phase of the plant is expected to be operational in 2012 and would be the fourth-largest coal power station in the world.

7 Opinion(s):

Anonymous said...

5.2 Million tax payers that need to cough up more and more, so that the other 45 million can get basic servics for free.


Who would have guessed.


Viking said...

wow. what's zero plus 33% ??

so all the people getting free electricity have to pay... still zero!
No protests there, then.

Anonymous said...

At 99c it is cheaper to generate your own.

As a home user my question is: "What is the cost per watt?"

I have a solar water heater that takes up half my roof. Made it myself. It is inneficient but it costs me 0 per watt. That is the only efficiency I am interested in. If you can generate 1 watt at 100% efficiency but the debvice costs me R 100.00 what is the point? I can generate a watt for R 0.01 but only do it at 10% efficiency, I am better off than you are.

My bill is down by half. Next is home made solar panels from cells a mate is bringing in from Korea. Costs you 25% of the price and a bit of "hobby" time to do it your self. In 18 months I will be able to tell Eishkom to shove their service.

Come on whitey... How long is you LAZY arse going to get butt bashed by Sipho's incompetence?

Doberman said...

I'm liking your thinking anon.

FV De Wet said...

What I would like to know is how did the previous Apartheid government get it right to support people with electricity without having these issues.

You would think that the New Government would learn something from the old Government on how to manage Electricity and productions thereof, but hey, did any monkey ever learn from the white man or did he just learn to live for free and sponge of others??

Welcome to AFRICA and the dependent little child it will stay for as long as it can.

FV De Wet said...

I agree with Anon, we should start getting pro-active when it come to our resources we use and pay for. Imagine if 4.5 million people in SA decided to use solar panels for electricity or boreholes for water, you would have a 45 million dependents depending on the Gov for electricity?? Which in the long run will mean we will have to pay extra taxes. Both ways we are fuked as we will alway keep paying.

Why hasn't the Gov looked onto Wind Generator like they have oversees, I heard one of those things can generate enough energy to support something like 1000 households (correction needed)

Vanilla Ice said...

I have 1 x Generator sitting in my holiday spot in SA. As new. Any takers?