Eskom, Busa team up to ask for more money
Fin24

Eskom, Busa team up to ask for more money

2014-03-14 15:05

Johannesburg - Eskom and Business Unity South Africa (Busa) plans to ask the government to try and find additional funding for Eskom, Die Burger reported on Friday.

Eskom introduced load shedding last week, to prevent a collapse of the national power grid due to coal supplies for electricity generators which were wet.

Busa met with Eskom on Thursday to discuss ways of preventing a continuation of last week's energy crisis, which forced Eskom to impose load shedding.

The possibility of further electricity price hikes to obtain the additional funding was mentioned at the meeting, according to Busa CEO Cas Coovadia.

That would have to be considered if no additional funding could be obtained from Treasury.

Coovadia said there are regulatory problems, which hinders Eskom and the right level of increased tariffs would have to be determined if that is the solution.

Should load shedding be on the cards, however, then the right frame of mind must be adopted to handle the situation, said Eskom CEO Brian Dames.

Coovadia said it would be important to determine jointly which portion of load shedding municipalities would have to bear and which portion the industrial sector would have to bear.

In 2013 the National Energy Regulator of SA (Nersa) approved tariff hikes of 8% per year for five years.

Eskom says these increases are too little to enable it to buy electricity from independent energy generators in order to enlarge its reserve capacity.

Neither does it enable Eskom to buy back electricity from large energy consumers.

Debt owed by municipalities

Eskom was owed more than R2.3bn by various municipalities, according to the civil rights organisation AfriForum.

The organisation said this outstanding debt adds to SA's electricity woes.

AfriForum called for electricity management to be privatised.

The DA's Helen Zille said the present energy crisis could have been avoided.

"For several years South Africa has been told that excessive electricity price increases were necessary precisely to avoid further blackouts," said Zille.

"There is a further 8% average increase in electricity prices scheduled for 1 April 2014. While Eskom and government do not deliver on their mandate, consumers have no option but to pay ever higher electricity prices."

She also wanted to probe Eskom executives' performance bonuses.

The impact of the energy crisis over the past six years has been so big that the country is no longer seen as the place to invest in Africa, economist Mike Schüssler of economists.co.za told Fin24.

He said in conjunction with strikes, load shedding could cause economic growth of under 2% if it had to continue for more than a week.

Comments
  • Brian Heunis - 2014-03-14 15:21

    brilliant!

      Paul Lessing - 2014-03-14 15:27

      ESKOM should rather ask the government to get their municipalities to pay their accounts

      Colin Craig Broadfoot - 2014-03-14 15:30

      ESKOM should rather ask to be replaced and admit that they cannot do the job.

      Open mind - 2014-03-14 16:01

      Stop the non-performance bonus's to the the fat cat thieves

      Mike Heyns - 2014-03-14 16:53

      Where is the 6 month half year R12.2bn profits? Even if you get 80% for the next 5 years, you'll still subject all to load shedding! WHY? Cause you are not using it for electricity supply!!

      Cattle Class - 2014-03-15 18:01

      There's only one way for EsKOM out of their cash flow mess. Supply chain finance. I met 'n guy from Prime Revenue supply chain finance and they can solve their problems without raising new debt through their multi bank platform. Call them ESKOM.

      Pravin van Tonder - 2014-03-16 12:20

      A brilliant plan would be to privatise eskom. Split it into 4 parts and sell it to 4 companies with proven track records. Take the profit and pay off Kapsch TrafficCom and end E-tolls.

  • Patrick Winter - 2014-03-14 15:25

    Stupid is as stupid does. The incompetence is way beyond what I thought possible.

      Mike Heyns - 2014-03-14 16:49

      OK, who is retiring now??

  • Naas Du Plessis - 2014-03-14 15:52

    It's due to mismanagement and not taking the target dates serious.

  • Cina - 2014-03-14 16:05

    But still they will accept increase in salary and bonuses. Bunch of idiots that can't run a company successfully.

  • Anton Tjabring - 2014-03-14 16:06

    Here is a novel idea. Load shed the municipalities that are not paying their accounts. This will show us who they are and free up some cash for Eskom pretty quickly. Most businesses stop supplying non paying customers. Then again Eskom is the only business that advertises to use less of its product.

      gareth.graybrowne - 2014-03-14 16:08

      How about charge countries like Zim for elec drawn from us

      Gerrie Malan - 2014-03-14 16:51

      Problem Anton, is that municipalities have been job creators (NB not work creators). Go check how their salary accounts have skyrocketed. After payday there is no money left for services, let alone paying Escom.

      Mike Heyns - 2014-03-14 16:55

      @garethec: Start at Nkandla, around the corner!!

      Boris Lenagry - 2014-03-14 17:57

      Anton, i pay my electricity every month on time because if i am late by one day, it gets disconnected. But i read the other day that the tswhane metro is owed 1 BILLION in fees, which of course includes electricity. So now i ask, if so much is owed (mostly by the previously disadvantaged, currently demanding part of pretoria) why does their services not disconnected? So now you say non paying municipalities should be load shed? Then the whole of SA will be in the dark buddy

  • Lunetic Mental - 2014-03-14 16:09

    Here we have the real reason for the rolling blackouts!

  • Sean Lock - 2014-03-14 16:13

    After R31 mil bonus for uppper management. There is no money. Are they SERIOUS. This is deff new SA we all in the dark here. Bring in a competetor. CANCer monopoly is not good. Maybe only for you. Bunch of theives.

  • Farukanai Korai - 2014-03-14 16:27

    '' it was not a result of bad planning or bla bla....'', minister of public enterprises' statement. Oh really? Who can save not only Eskom but Africa's current biggest economy (SA)?

  • dwayne.clayton.9 - 2014-03-14 16:32

    Eskom big shots should drop big pay package as well.

  • Rebecca Smith - 2014-03-14 16:36

    Amazing how everytime they load shed they want to put the price up, I think they load shed on purpose just to drain more money out of our pockets. No one in Eskom should get a bonuses, use that money instead, they for sure don't deserve and bonuses if they can't even keep the lights on

  • Gavin Harrison - 2014-03-14 16:48

    Stop giving people cheap or free electricity you morons! Especially neighboring countries! You are asking us to subsidies these people because they are showerhead's friends or he wants their vote! GFY you imbeciles!

  • Colleen Williams - 2014-03-14 16:51

    1. No bonusses to the fat cats. 2. Sue the municipal managers for corruption and not paying the Eskom bills. Or 3. Sell Eskom to people who know how to run a company. This is beyond a joke now - get rid of the thieves living off the fat of the land!

      Mike Heyns - 2014-03-14 21:01

      Aren't you supposed to "perform" to get a "performance bonus"? Oh yes, forgot, this is Africa!!

  • James Smythe - 2014-03-14 16:56

    Enough already! There must be a forensic investigation into Eskom to determine what the hell is happening to the massive amounts being paid for electricity - a commodity which they have increased by 300% in price to the average user in recent years! And still they claim they need more to avoid disaster? Simply not on - and if the present management cannot manage to produce electricity for the country they must be fired!

  • Jacobus Francois Havenga - 2014-03-14 16:57

    Money don't generate electricity - hard work does

  • Jacqui Daane Van Rensburg - 2014-03-14 17:13

    Stop paying bonusses and see that every municipality pays their accounts. That will help, more than you think.

  • George Gibbs - 2014-03-14 17:22

    Maybe cut down on staff and management retention bonuses, n annual bonuses firstly. Then get the money that everyone else owes you. Increase the tariff on exporting electricity. Once this is done then you consider charging us to sort ur Shiet!!!! Out buy charging us more!!!!!!!!

  • Marian Park - 2014-03-14 17:24

    Hell NO!!! Load shedding is just blackmail to try to force a price hike. If they were in so much trouble they would not be able to pay millions in bonuses to their execs!!! NO, NO and NO again!!!

  • Robert Clive Warriner - 2014-03-14 17:27

    Perhaps if they turned off the lot that did not pay there would be excess power and no need to cry to the tax payer. No other business would last using the eskom / saa model!

  • Filipe Nunes - 2014-03-14 17:35

    A price increase does not all-the-sudden improve the lack in capacity!?

  • cornu.perold - 2014-03-14 17:38

    Didn't they just declare enormous profits? These idiots have ruined a once proud and globally respected utility. Just like they've done with SAA. Eskom's incompetence is dwarfed only by their arrogance!!!! How dare they declare these profits, pay massive exec bonusses and then still beg for money??? Open the gates and let the competition begin!!!

      Mike Heyns - 2014-03-14 20:46

      @Made-in-RSA: Assuming now that they should know the difference between profit and cash flow!?!? For them: Cash Flow = Pocket! Profit = Smiley face! Balance Sheet = Sharing bed with wife!

  • Johann van den Berg - 2014-03-14 17:42

    Weren't they nominated for a prize as one of the seven worst companies in the world about 3 or 5 months ago. Does anyone know how they faired here?

  • Richard Young - 2014-03-14 18:28

    If they want more money then they should stop spending ridiculous amounts in unnecessary bonuses

  • Kirsty Prinsloo - 2014-03-14 18:55

    Make them pay their bonuses back. They steal from us and we are supposed to bend over and take some more. He'll no

  • Julia Griffiths - 2014-03-14 20:10

    Escom officials got to get their act together and recover the outstanding debt. They can't expect us to pay for their incompetence in not being able to recover the debt owed

  • Pieter Pretorius - 2014-03-14 20:24

    Ah, yes, I thought there was a reason behind the load shedding, they had to do something to show government who is in control if they need more money. Fire the top management because they cannot do the job and let them repay any bonuses they received.

  • Roger Fraser - 2014-03-14 20:59

    Dont give them a cent .The government should rather encourage the formation of at least two to three large private electrical companies to start-up and feed the grid at competitive rates like in other countries where there is competition then lets see if Eskom can hold a gun to everyones head .Sick of all the state enterprises thinking they can just ask government for more .Its TAXPAYERS money the government has no money its our taxes you stealing and our money paying electricity bills.

  • Utopian Indigent - 2014-03-15 05:58

    But first they will pay more bonuses with our blood money...

  • YISIT - 2014-03-15 14:51

    A poll today, concerning price hikes for electricity, gives as one option 'The Government should pay for it' How misleading can you get? The government has no money. Its only income is from taxpayers. So stop giving the impression that the government has some bounty which can be dispensed without hurting us all. We also pay for corruption, mismanagement and expensive status symbols. Remember that when you vote

  • Cattle Class - 2014-03-15 17:49

    Mr Dames, call these guys - Propell Supply Chain Finance. They will help your cash flow. They have a brilliant cash flow solution without the need to raise more debt.

  • Fanie Gerber - 2014-03-15 18:08

    HOW will throwing more money at eskom make any difference - just more to waste. It is like opening the tap bigger top fill a sieve. It just wont work.

  • Louise Cook - 2014-03-16 10:36

    And Gigaba - he also gets fat bonusses that he doesn't deserve. And imagine Rob Davies with all his industrialisation plans and incentives to boost manufacturing - what a joke! There's not even enough power to implement the plans but Davies just carries on. Where's the man's common sense?

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