Fin24

Zuma appeals to Eskom

2012-05-30 19:15

Parliament - Concern for consumers will inform Eskom's upcoming electricity tariff increase application, President Jacob Zuma suggested on Wednesday.

Delivering the presidency budget speech, Zuma pointed out that Eskom reduced its tariff hike for this year from 25.9% to 16% thanks to government's decision to sacrifice a return of R8bn.

"I had asked Eskom to explore possibilities in this regard and they responded within a month. This will put more than R8bn back into the economy during the current year," he said.

"This approach will also inform Eskom's next price application -- which Eskom is now preparing."

The electricity utility is due to submit its next tariff application to the National Energy Regulator of SA, Nersa, in July.

But Eskom's finance chief Paul O'Flaherty noted last week that the R8bn saving to consumers had been exhausted and that the time had come to move to cost-reflective tariffs, suggesting steeper increases.

He said when Eskom approached Nersa, it hoped to secure an agreement firstly to extend the multi-year price determination period to five years, and secondly to raise tariffs to levels where production costs would be covered.

This was necessary to protect Eskom's credit rating to enable it to keep borrowing money to complete its infrastructure expansion programme.

O'Flaherty said the price needed to reach 90 cents per kilowatt hour in real terms in five years' time.

Comments
  • Vasee - 2012-05-30 18:14

    Eskom is taking the public for a ride. It has Nersa which is a toothless body which listens to Eskoms plea for more money.To ask for increases more than the inflation rate is riddled with corruption.We need the public protector to investigate Eskom who seem to be a front for the govt.to take out money.Eskom could be a cash cow for the govt when it needs money.Money is squandered by giving handshakes to individuals running into millions and also free spending on anything with reckless abandon.The public protector should investigate and advise the public if everything is well at the parastatal.

      goyougoodthing - 2012-05-30 19:45

      But rasing a tarrif by 16 percent Eskom is NOT PUTTING MONET BACK, they simply are not stealing 8billion. I see Zooma's understanding of math is equivalent with his education level.

  • sheda.habib - 2012-05-30 18:47

    Hahahahahaha...... He takes a simple little gallery to court but appeals to Eskom.....?? I think he is a bit upside down.....or just plain stupid......!!! They lied about the shortages to get the last increase and Zuma did nothing about the lie........(maybe because he was in on it) Stop playing politics Zuma you are REALLY BAD AT IT..... Rather just be the dictator you are striving to be...

      Mark - 2012-05-30 19:34

      I think your computer has been hijacked by the Taliban.

  • peter.mansfield.395 - 2012-05-30 19:43

    Only hope he does not kill our electricity supply by keeping prices down like in Zimbabwe where 18 hour blackouts are now the norm. Be careful what you wish for, people.

  • Mandy Casey - 2012-05-30 20:31

    No decrease here 8 billion tax money has been sacrificed. We will pay for it anyway. And more next year, because where will that 8 billion come from , they won't simply write it off and walk away.

  • jodyvford - 2012-05-30 22:35

    How is is that ESKOM can get away with such ludiocracy. year and year out we pay of electricty bills expecting that they will be doing everything that they should be to maintain what we pay for, and yet here we are having to cough up exceedingly high amounts of money all because they were not doing their jobs. All while managment continue to take their ridiclously high bonus packages every year

  • Cameron - 2012-05-30 23:03

    Just sucking the life out of everyone!! Eskom are like a parasite!!

  • Cameron - 2012-05-30 23:03

    Just sucking the life out of everyone!! Eskom are like a parasite!!

  • Eduard - 2012-05-31 00:11

    The price hikes has nothing to do with the fact that Eskom employs employs more (incompetent) people than would otherwise be necessary .... ;-)

  • brionyl.french - 2012-05-31 06:49

    Cant someone investigate Eskom? I think they are stealing from us too!!!

      Julie - 2012-05-31 08:45

      @brionyl.french, you only THINK they're stealing from us too? Correction, briolyl - they ARE not only STEALING - they are ROBBING us, like the rest of the ANC and all its allies and supporters...

  • themba.fourtyone - 2012-05-31 07:28

    @brionyl.french u ryt they all bunch of skeelems, all they want is huge bonuses on our expense

  • ntokozo.banda - 2012-05-31 08:19

    ja thats true Eskom cn not jz let go of R8billion and nothing in return...therez something fishy here

  • SongzJ - 2012-05-31 09:35

    Eskom is just like the Government! Full of Corruption!!

  • Maredi - 2012-05-31 12:19

    Kangaman is politicking again. as Mangaung gets closer and close we must expect more of written statements (ones he battles to ead anyway)by his spin doctors. However, it won't change the fact that he is useless.

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