Fin24

Busa to examine Eskom tariff request

2012-10-22 17:38

Johannesburg - Eskom's electricity tariff increases need to be carefully managed to minimise their impact on the South African economy, Business Unity SA (Busa) said on Monday.

"While Busa appreciates the need for tariffs to be cost reflective, the quantum and pace of tariff increases need to be carefully managed in order to forestall any negative impacts or shocks to the economy," CEO Nomaxabiso Majokweni said.

Eskom applied to the National Energy Regulator of SA (Nersa) on Friday for a 16% increase in electricity prices each year for the next five years.

This would take the price of electricity from 61 cents a kilowatt hour in 2012/13 to 128 cents a kWh in 2017/18 -- more than doubling it.

Busa welcomed the transparent manner in which Eskom communicated the details of its tariff increase, but said it would still look carefully at the request.

"In view of the previous concerns by business on the cumulative impact of administered prices, especially electricity, Busa will also be critically interrogating the structure and allocation of the tariff increase across the industrial, municipal, and household categories."

Majokweni said the tariff should "reflect a well-considered balance of economic performance, global competitiveness, and affordability for consumers".

The current Multi-Year Price Determination, MYPD2, ends on March 31, 2013. New tariffs will be implemented from April 2013.

Nersa will announce its final decision in February, following an extended period of consultation and public hearings.

Comments
  • markus.esterhuyse - 2012-10-22 17:49

    lke Dunne wrote \3 weeks ago my Audi A4 cabriolet went in for repairs to fix a repeat problem with the roof that has been niggling for over a year. While booked in to the Northcliff Audi branch it was involved in an accident that has led to it being written off. Over the last three weeks we have been very patient while Northcliff Audi investigated the matter, chatted to their risk assessors and insurance company. Throughout this period we have been treated as if the fact that our vehicle was totaled on their watch was somehow a non-issue. \r\n\r\nWe began the process dealing with Ben Jonge Poerink, the service manager and Shaun Michael, the dealer principal. Upfront we told them we would not be willing to claim from our insurance as it wasn’t our issue and we didn’t see why we should suffer the consequences of an increase to our insurance premiums. They promised to get back to us with next steps. We then waited 3-4 days with no update or feedback. Finally days later having left message after message, Shaun came back to us to say that Audi’s insurance would not pay the claim and we should claim from our insurance (yes it did feel like déjà vu). \r\n\r\nWe refused to accept this and requested that he escalate the issue internally to someone who could resolve it. He said he would get back to us as soon as possible. Since then we have had little or no feedback from Audi, except to say they would pay for it but with no further details. Then despite leaving numerous messages and sending a number of further e-mails we finally called the national call centre, who promised they would escalate it immediately to head office, Shaun responded with a one line e-mail to say he’d let us know something when he himself heard. I for one am not holding my breath however as there seems a total unwillingness from Audi to resolve this issue. \r\n\r\nNo one in this process has had the decency to treat us with even a level of respect, to pick up the phone and return our calls even if there is nothing new to report, to send us e-mails that take more than 2 seconds to write on a blackberry and perhaps even to start with an apology for their tardiness at getting back to us or returning our calls (every engagement with them in this process has had a 3-4 day turn around time with dead silence in between). And finally to actually resolve the fact that we are sitting with an Audi A4 Cabriolet sized hole in our life. \r\n\r\nYour website makes the following promise: \r\n\r\n“National After Sales is committed to becoming the benchmark in After Sales Service across all manufacturers in South Africa. In order to achieve this, the focus is on the three most important areas of the business: Service Customer Satisfaction, Service Quality and reduction of repeat repairs, and Dealer After Sales Growth and Profitability.”\r\n\r\nSo far I have yet to experience customer service satisfaction, service quality and a reduction in repeat repairs (particularly since my vehicle was in for the third time to solve the same problem). I would suggest therefore that until Audi can actually deliver on these promises that they don’t put them up on their website at all.\r\n\r\nI am puzzled that in today’s day and age where customers really are the heart of your business that we are seen as an irritation rather than a consumer of your products. This is a pity since despite the fact that I have always loved my Audi I will not be buying another one due to the lack of after sales service from Audi South Africa. \r\n\r\nSo, Ryan Searle, CEO and Chris Khumalo, head of Audi National After Sales, I would recommend that you spend a bit more time finding out what is actually happening with your customers because your business exists by virtue of us.\....well done Audi

      Grant Henry - 2012-10-22 18:04

      Thanks for that info, my wife and I are deciding between a new Bmw or Audi, but after reading your story and sharing it with my wife, makes it clear to me that BMW seems a better choice.

  • rooibok1 - 2012-10-22 18:28

    And the government will be very happy to pocket the extra VAT generated by this ridiculous proposed increase.

  • andrew.grieveson.92 - 2012-10-22 18:58

    Eskom as yet has not agreed on a rate to pay private providers of electricity and yet they are looking for increases. These should not be agreed to until all rates payable to wind , gas and solar power produces have been finalized . Get a move on with this ! All your talk about pvt produces is tainted with fear of losing your abusive monopoly .

  • andrew.heyes.35 - 2012-10-22 18:59

    Didn't we get told a couple of years ago - "yes, big increases but only for three years"? Now it gets to the end of those 3 years and now it's "yes, just another 5 yrs" i.e. Just tighten your belt and shut up and pay... If it's meant to be "fair", as ESKOM claims, then stop screwing the consumer over just so that the aluminium smelters can be subsidised and get their electricity cheap. If you want to build national infrastructure then great, lower our tax rates and we'll pay for it on a user pays basis. Same goes for e-tolls. ESKOM say our electricity is cheap...really? In terms of buying power or just on a pure R cost basis vs overseas costs? From where I sit it sure ain't cheap compared to our salaries...

  • jason.connell.984 - 2012-10-22 19:40

    Agreed after 3 years, increases should have stopped. Consumer Protection Act need to investigate this

  • ian.d.samson - 2012-10-22 20:25

    So, Eskom, when will you disclose the BHP Billiton pricing structure, as well as what you charge foreign countries to buy South African electricity? Pensioners would also like 16% per year increases, but we don't get that. So you better get real and reduce your demands by at least two-thirds!

  • sandy.langenstrass - 2012-10-22 22:37

    I believe that the reason we home dwellers, are being bled for electricity, is to pay for Zimbabwe,and for all those Solar panels I see fitted to most RDP houses. These shack dwellers keep telling us that they have no money for food....but 90% of these shacks have something I can not afford....DSTV DISHES on most of their roves.

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