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Eskom: shortfall despite hikes

Oct 13 2009 12:15 Sikonathi Mantshantsha

Johannesburg - Electricity parastatal Eskom foresees a R63.3bn gap in its finances, even if the National Energy Regulator of SA (Nersa) grants it a requested 45% increase in fees per year for the next three years.

Eskom announced on Tuesday that it has requested Nersa to raise electricity prices by 45% per year from 2010 to 2012. The parastatal also proposes increases of 12% in 2013, 10% in 2014 and 7% in 2015.

The power utility said government had endorsed this approach, which was based on the smoothing of price increases.

"It's a painful but unavoidable adjustment for ensuring security of supply in the future," said CEO Jacob Maroga.

An alternative option, not recommended by Eskom, was an increase of 146% in the first year of the period.

Eskom has embarked on a capital expansion programme of about R400bn. Even if its requested increases are granted, it will still have a funding shortfall of R2.1bn in 2010, R32.7bn in 2011 and R28.5bn in 2012.

It said it would look for other funding sources, including government guarantees, to cover this shortfall.

Maroga expects Nersa to make a decision by early 2010, after which the hikes would be implemented from April.

- Fin24.com

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Miguelito
Oct 25 2009 10:25 Report this comment

Why Marogo and his cronies cannot follow the example of Lee Iacoco of Chrysler and only draw a salary after "resurrecting" ESCOM I do not know. Jokes aside, are these people running ESCOM really qualified to do so? I doubt it. Hopefully we can all turn to windpower, solar enery, l.e.ds, gas etc and let ESCOM go and sink in the mess it has created for itself and the country

Phil
Oct 15 2009 08:08 Report this comment

Why do we have to pay for Government and Eskom mistakes and mess up ? They were warned years and years ago, but they were too busy lining their own pockets. How about decreasing their salaries by 54%. It would still give them a few million to live on, but would help. TAKE THE MONEY OUT OF LOTTO then everyone would have contributed. This is outrageous and calls for a stand from the paying people.

jan
Oct 14 2009 22:13 Report this comment

Its gonna hurt!! Do you really want to lower your electricity bill? Change your lightbulbs to LED bulbs. Go to http://www.c2r.co.za to see the variety of bulbs that is available. Bulbs for any fitting and any situation! Residential, commercial, industrial solutions available. There is NO NEED FOR LOADSHEDDING, there is NO NEED FOR OUTRAGEOUS TARIFF INCREASES!

Steve
Oct 14 2009 14:41 Report this comment

I think if its about funding capital projects, then they should be funded from the National Fiscus. They should get a grant from the Budget, because increasing the cost of electricity to fund projects is just unreasonable given the fact that virtually everyone relies on electricity, the proposed increases will end up fueling inflation because there will be increases across the board to compensate. Government should actually introduce initiative like subsidisng the cost of low power bulbs.

Rina Roode
Oct 14 2009 13:42 Report this comment

This has gone far enough. What about pensioners? How will they pay for electricity. Cut the salaries of the top brass and put the money into helping the structuring of ESKOM.

Hloks
Oct 14 2009 13:15 Report this comment

this is really too much,we can't affort anymore,im now paying double the amount of what i was paying last year,whats gonna happen next,this is really Bullsh*t,the government is reaping us with Tax,honestly speaking Electricity is getting too expensive more than everything,I think all tax payers should strike.

Faachem
Oct 14 2009 11:11 Report this comment

Think it's about time for a countrywide ratepayers strike. no-one pays for about three months and lets se how that affects service deleivery

Esra
Oct 14 2009 06:48 Report this comment

I've got the answer... Go Solar, gas stoves and pre paid meters. Go SOLAHART!!!!


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