State mulls delay to power tariff hikes
Cape Town - The government may delay electricity tariff increases, a move likely to hurt state-owned power utility Eskom’s funding drive, Energy Minister Dipuo Peters said on Thursday.
Last year the power regulator granted Eskom a 24.8% tariff increase for the 2010/11 financial year, falling short of a requested 35% hike.
For the next two financial years Eskom was granted increases of 25.8% and 25.9% respectively, as it seeks cash to build new power plants in the world’s top platinum producer and major gold exporter.
“What we are considering is an approach that delays the tariff increase,” Minister Dipuo Peters said in a written response to questions in parliament.
“This is being considered in the next tariff determination for the period starting in 2013,” she said, but did not give further details about possible rate adjustments.
Eskom, which provides almost all of South Africa's power, expects its debt to reach R400bn in three years' time as it ramps up funding to build new power plants and prevent a repeat of power shortages in 2008, which crippled the key mining sector.
Eskom are greedy pigs. They are ruining the economy and making life harder for the poor folk. I have nothing nice to say about these clowns.
grred at its best - they secured billions of rands in loans for development of power plants then still charge huge amounts to the consumer for the same thing. And I bet my last rands that most will go to bonuses. Eish! you get biiig bonus for shafting consumer
Funding who for what bonuses? And they still make a profit? Cut this years bonuses by 10% and whalla, there is your R400bn requirement!
My electricity went up 49% (yip, the 24.5% applies to low "one-light" households only!)
If one recalls the Cart Blanche documentary, the shortage of power in 2008 was not due to lack of capacity to generate power, but rather due to the lack of being able to get coal to the power stations and this was a result of questionable contracting of transport companies
Eskom recently reported a R12 billion (yes, BILLION) profit, thanks to the recent tarriff hikes shouldered by an increasingly burdened taxpayer. Surely for a state-owned utility organisation, profit maximisation should not be the key objective. Adding salt to the wound are the fat-cat incentives paid to the senior management.
At this rate they will be debt free in 33 years as they are building big power plants at R400bn.
Exactly , what the hell are they going to do with the profit, they are suppose to use it to pay of their loans
Eish...Eskom....wait till the funding/loans they received goes missing...and it will based on the ANC's history, can't fight history...and everyone is totally ignorant to the fact that once the Likes of the World Bank/China own Eskom through loans, they control our Country....makes you think....that ANC comrades are selling our country to fill but a few pockets...but who cares hey...