Eskom to up tariffs to recoup diesel costs

Eskom to up tariffs to recoup diesel costs

2015-02-04 17:34

Johannesburg – The National Energy Regulator of South Africa (Nersa) said on Wednesday it has given Eskom the go-ahead to charge consumers more for power to recoup the extra diesel costs it has incurred while running gas turbines to cope with electricity demand.

Eskom is currently battling to meet its daily demand of about 30 000MW and is relying heavily on diesel-powered turbines to keep the lights on.

The supplier's generating capacity has been compromised due to technical faults at its aging power plants, as well as a shortfall in its installed power generation capacity, leading to regular power cuts since March 2014.

Thembani Bakula, a senior official at Nersa told Reuters consumers will pay more for electricity in the 2016/2017 financial year, which starts in April, but the authority was still calculating the exact amount of the increase.

READ: Time for Nersa to own up on Eskom

In November, Nersa granted Eskom a 12.69% tariff increase which comes into effect in April but the utility has said the amount was insufficient to cover its R225bn funding shortfall.

"In this financial year, we have spent more on diesel than we anticipated and we have been able to show and convince the regulator as to how we exceeded our budget," Eskom spokesperson Khulu Phasiwe said on Wednesday.

The cash-strapped utility is also struggling to generate enough cash to service the debt it needs to pay for the completion of new power stations.

Eskom said earlier on Wednesday it would widen rolling blackouts due to a shortage in generation.

ALSO READ: Eskom: Lights on for State of the Nation address

  • Chris Ronald Rodrigues - 2015-02-04 17:39

    I wont pay i will point blank refuse they make enough to give themselfs bonuses

      Denis Dendrinos - 2015-02-04 17:49

      What did that one soweto resident say on the one news show about illegal connections? Phansi epaying electicity? hmmmm - maybe we should all start taking that approach!

      Theo Marx - 2015-02-04 17:50

      I agree. We should hold off as long as we can with our payments to these idiots. We're getting used to living in the dark anyways.

      Stephen AndKathy Whiteley - 2015-02-04 17:50

      Unfortunately we are pay-as-you-go, so we don't have that option. Kathy

      Made Inthe South - 2015-02-04 18:18

      The current state of Eksdom is exactly according to the needs of Zuma783.Because now he will justify the R1 Trillion plus Russian nuclear reactors.Lots of bribes and tenders for the cronies So no crisis at Nkandla. Zuma783 does not see this as a crisis,but he see it as an opportunity. An opportunity for a brown envelope from Putin

      Mike Heyns - 2015-02-05 17:44

      @M-It-S: The looming disaster is knocking at the door! A water crises!! Next on the list! And once they destroyed that as well, they have us exactly where they wanted us! Agree to everything and pay anything! The minority WILL be forced to support the majority!! Communism take over and there is nothing we can do about it!!

      Frank Zippa - 2015-02-06 11:04

      What a sodding mess! Just because we think we have to be "nice" to another species.

  • Allan Corbett - 2015-02-04 17:40


  • Herman Swart - 2015-02-04 17:41

    The top management of Eskom must decrease their salaries by 75% with no bonuses.

      Keith Rogers - 2015-02-04 17:43

      to 0% and then go to prison or get shot.

  • David Agenbag - 2015-02-04 17:41

    Paying more for bad beee management? Again?

  • Paul Weber - 2015-02-04 17:42

    For Sake, not only are we already being threatened with a nation wide blackout, but now a tariff increase as well.. why not bill all those illegal connections in all the major townships? I think every tax payer should stop paying tax and get a outside company to start producing and generating electricity.

      Marlene Black - 2015-02-04 19:22

      Most sensible idea of all time.

      Alan Gernet - 2015-02-05 11:29

      Eishkom's response to paying SA Consumers "Pay back da diesel"

      Jacques Van Dyk - 2015-02-09 15:56

      @ Paul. Exactly what should be done.. We should simply stop our employers from deducting PAYE from our salaries. We hold on to that money and force this criminal government and all their crony organisations to their knees. No way in hell that they can spend our money if they cant get their hands on it. Do the same as we are doing to SCUMRAL..

  • byron.beedle.3 - 2015-02-04 17:42

    Before any increases are granted ESKOM should go and collect the monies that are not paid in the disadvantaged areas and take firm action against all the illegal connections.. Then maybe they will not have a shortfall.

      Stephen AndKathy Whiteley - 2015-02-04 17:52

      Thaba Chweu Municipality owes ESKOM a fortune, but most people are pay-as-you-go so even though electricity is being paid for it is not going to ESKOM. Kathy

  • Abizou Walkeen - 2015-02-04 17:43

    Nice. Keep voting ANC suckers.

      Theo Marx - 2015-02-04 17:51


  • Lynton Asbury - 2015-02-04 17:43

    Good luck with that. Idiots

  • Jadwiga Richmond - 2015-02-04 17:45

    So ESKOM makes a kock up and we are made to pay for it. It is now beyond high time that ESKOM is bought out and allowed to run by competent people. The government have proved beyond doubt that they are not capable of running a business, other than into the ground, at our expense. We should all stop paying for electricity all together, then swee what happens, this might just force them to sell it and make it a private entity. Then we will all see the lights come on again. Another thing I am not going to pay for anymore is my TV license as I cannot watch it when I want to because of loadshedding. That is 2 hours per day, 14 hours per week so they either decrease the license fee or get nothing.

  • Mark Austin - 2015-02-04 17:45

    We must pay for their stuff ups and incompetance. Typical africa - screw the consumers - and yet the management will receive their yearly bonuses and self enrichment diplomas. South Africa the black hole.

  • Bob Parnell - 2015-02-04 17:46

    *********CK YOU

      Trevor Pietersen - 2015-02-04 17:50

      I said the same and new24 deleted it....

  • Philip Mare - 2015-02-04 17:47

    Are you f.... kidding me!? Like money

  • Wayne Anthony Faulds - 2015-02-04 17:47

    Instead, start by collecting the approximately R75 billion owed by municipalities who are in arrears due to mismanagement of their revenue collections. Secondly, collect what Zimbabwe owes Eskom Thirdly, privatise Eskom, appoint competent managers and board and list it on the JSE so that the public and investors can hold management to account.

      Robert Burroughs - 2015-02-04 22:20

      They say our grid is overloaded but they still supply foreign countries with electricity? Cut them off the grid and South Africa should have enough. Ooops, that will probably mean smaller bonuses. Instead of R6 million the poor sods will only get R4million. Shame!

  • Hennie Cloete - 2015-02-04 17:49

    Nope!! I'm not paying for ignorance and incompetence.

  • Jaco De Witt - 2015-02-04 17:49

    Most of it will go for bonusses remember under this government only incompetence and corruption gets rewarded nothing else.

  • coenraad.vaneeden.5 - 2015-02-04 17:49


  • Nicholas Johnson - 2015-02-04 17:50

    Can't supply so demand more! Scum!

  • Nicholas Johnson - 2015-02-04 17:50

    Can't supply so demand more! Scum!

  • Liz Rushby - 2015-02-04 17:50

    And here we go... Half the crap happening at eskom was a ploy to get our tariffs increased and guess what it's happening. They are all liars and thieves and should be arrested.

  • Frank Rita Vennard - 2015-02-04 17:50

    You could buy a hell of a lot of Diesel with the money given away in Eskom Bonuses - rewards for going backwards!

      Alain Craven - 2015-02-05 09:49

      Bonuses would not pay for a fraction of what they use. Which is not to say they should have bonuses

  • Heidi Beckett - 2015-02-04 17:51

    If you stop taking a salary of R22 million a year. You may not be in this predicament!!!!

      Jaapie Bopape - 2015-02-04 18:30

      Perhaps Heidi if they paid someone who had the skill sets to pull Eskom up it might be acceptable, in this case it is a deployed cadre.

  • Musa KamaShobane - 2015-02-04 17:52

    Surely, surely we are being taken for granted by ESKOM. This is just not even poor management of the enterprise but a shippish style of managing such a huge responsibility

  • Jaco Wiese - 2015-02-04 17:52

    They could make up the money by disconnecting the non payers.

  • Teunis Rooseboom - 2015-02-04 17:53

    Its time we start looking after ourselves. Solar power is becoming very cheap. Solar geyser technology is becoming cheaper. Warm water covered! Solar panels is becoming cheaper. LED lighting and television covered! If we are willing to change our habbits a bit, we can keep Eskom in the back yard to just supplement our fridges and kettles.

      Petrus LeRoux - 2015-02-04 17:59

      They will just enforce an eskom tax on you dude...doesn't matter if you use any electricity at all....chief Zuma needs the money to pay for the nuclear deal. ...only chance is a change in governmemt...or a Arab springs revolt

      fragtion - 2015-02-04 18:19

      I think rather focus on finding a new home in another country where you won't have to spend your life trying to survive and protect yourself like we're living in caveman days

      Fred Smith - 2015-02-04 18:43

      @Fragtion Agreed, more and more I'm wondering if the best long term personal solution isn't to disinvest from this mess and sell my skills and other assets to a more competent country.

      Robert Burroughs - 2015-02-04 22:26

      @Fragtion. Please explain how I can survive, say in England, on 400 B,Pounds a month, then I'll pack up tomorrow. I've never wanted to be a runner but we are now being pushed into a corner

      Jacqui Daane Van Rensburg - 2015-02-05 11:39

      Robert Burroughs in Great Britain people who do not earn enough get benefits. But why should you only earn 400 pounds?..

  • Craig Dennis - 2015-02-04 17:53

    Piss poor management

  • Francois Faf Petzer - 2015-02-04 17:53

    ill rather have the diesel turned off and cope with load shedding than paying any bonuses to the asses

      Robert Burroughs - 2015-02-04 22:28

      How can you be so insulting to an ass? An ass has more brains AND knows how to use it.

  • Andrew Mileham - 2015-02-04 17:55

    #paybackthemoney !!!!!

  • Magdel Wessels - 2015-02-04 17:55

    So the ceo gets a bonus of millions and a huge salary? Shouldnt that be used? No profit no bonus it works That way in a business

  • Gabrielle Oahu - 2015-02-04 17:55


  • William Steven Pearson - 2015-02-04 17:56

    F U GOVERNMENT. This is your way of taking our money which you clearly don't know how 2 handle. I am so fed up of paying for your mistakes. Zuma you are coming up for 70!!!! R you not the slightest bit embarrassed 5year Olds can identify you are incapable of even getting people drunk in a shebeen. Stop this complete disgraceful anti civilized way of treating the people of this land. Only a common idiot takes the power of a civil servant to head. You treat us like common fools who must bow down to you as you believe the title of presedicy gives you royal right, let me make it clear to you Zoooma my respect, my patients, my acknowledgment, my hope and my faith in you has depleted like your ethics, pride and responsibility for The once esteemed powerful SA. I finally have my sonar question, how does it feel Zuma to officially be the 1st president after DEMOCRACY that now the white exodus can say "ja I told you so"

  • Theo Marx - 2015-02-04 17:57

    Please explain this. If they haven't done any maintenance for years and they still haven't finished the plants we already paid them for... where have all this money gone? Something tells me this increase will mean sweet all..

  • Gabrielle Oahu - 2015-02-04 17:58

    F**KIN MILLION BONUSES, supplying other countries wth electricity which we pay -hectic blackouts now u wna charge again GO GET F**KED>>>

  • Kwezi Songa - 2015-02-04 17:58

    I knew this eskom kark was part of a big scam far cars!!!!

  • sally.brinsford - 2015-02-04 17:59

    Make the non payers pay simple! !

  • Craig Knight - 2015-02-04 17:59

    So Eskom screws up, cannot manage its power stations, cannot project manage Medupi, cannot perform preventative maintenance and pays out so called "performance bonuses" and now want the public to pay. What next??? Golden handshakes to get them out??? Time for mass non payment of bills!!! It can be done, if everyone does pay the bill on time due you still have 30 days to pay it before cut off, so its easy. Any way we live with load shedding, so lets not pay.

      Malcolm MacLeod - 2015-02-04 21:09

      Large quantities of people are on prepaid electricity - e.g. most of Cape Town... So whats plan B?

  • Sage Wiseman - 2015-02-04 17:59

    Great business model, they screw up and we pay. I'm sure they are desparate to make mega bucks in bonuses. What about the below cost electricity sold to Aluminium Smelters, I presume they get no increase. Thank the IDC for being the geniuses who paid out hard earned money to destroy our electricity reserve with these two monsters

  • sean.wasserman.3 - 2015-02-04 18:00

    Crude prices are at their lowest levels. Converting it to useful fuel takes electricity. Putting electricity prices up means fuel prices will increase even if the crude price remains fixed. Eskom will pay more for fuel. The increased electricity price will not cover fuel cost and so the cycle continues. Eskom also produces electricity from coal. But it takes energy to remove the coal from the ground. Question is what percentage the diesel engines make up of the total energy cost of electricity generation.

  • Michael Loans - 2015-02-04 18:00

    I'm sure ESKOM loves it when a plan comes together

  • Hendrika Erasmus - 2015-02-04 18:01

    So we have to pay more,for more LOADSHEDDING.....PATHETIC!!!!!!!!

  • Mohamed Mansoor - 2015-02-04 18:02

    I have been complaining for weeks to eskom about illegal use of electricity on our road. The amount being stolen can power another street of houses. They just turn a def ear on my complain and then we have to pay

  • Alex Amos - 2015-02-04 18:02

    Seeing as how illegal activities are the norm in our country, would I be able to start my own private electricity supplier and start giving it to people for "donations" ? You know, cos I won't be selling it to the public then...

  • Svenson Eriksen Zeleman - 2015-02-04 18:03

    I think its now time for Civil disobedience its too much....

  • Tshepo Mnisi - 2015-02-04 18:03

    Eskom go to nkandla and they zuma to give that bill of 256 million and dat should settle the debt thnx

  • Jan Koosberg - 2015-02-04 18:04

    Privatise electricity generation. this problem can't be solved any other way.

  • Jan Koosberg - 2015-02-04 18:04

    Privatise electricity generation. this problem can't be solved any other way.

  • dianna.beatson - 2015-02-04 18:04

    You screw up and the citizens must pay? If South Africans vote in the current government again, you are all nuts. Enough is enough. They are robbing us all blind.

  • Mark Anthony - 2015-02-04 18:05

    mtn vodacom cell c there you go follow eskom and make our networks worse then tell government you need to up your prices to fix it

  • Machiel Daniel Vorster - 2015-02-04 18:05

    So again south africa pay for incompetence

  • Arthur A Lilford - 2015-02-04 18:05

    ESKOM you stuffed up - you pay - take it from the huge salaries you pay for incompetence - now we pay for your screwing up again and AGAIN - useless just like your cANCer bosses

  • harold.marsberg - 2015-02-04 18:06

    Get the money due by Soweto and other township residents and you can reduce prices......oh, and stop supplying Zimbabwe, Mozambique, et lower tariffs, nogal!!!