Fin24

Eskom's electricity hikes may come down

2012-12-03 16:46

Johannesburg - Eskom's requested electricity tariff could be lowered to about 10.8% and still be cost-reflective, Business Unity SA (Busa) said on Monday.

"If more detailed information had been provided it might have been possible to find further savings," Busa said in a statement.

"According to research commissioned by Busa, an accelerative price path, at a lower rate, can be achieved without negatively impacting on supply security.

"These electricity price shocks now have significant adverse economy-wide impacts."

Eskom applied to the National Energy Regulator of SA (Nersa) in October 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 128c a kWh in 2017/18 - more than doubling it.

Busa said the Nersa consultative process was as essential in making the right decisions about future electricity tariffs.

"A number of key sectors in the SA economy, such as mining, minerals, and chemicals are heavily reliant on electricity as an input into their production processes," the organisation said.

"These sectors often are highly trade-exposed and would seem to have limited ability to absorb the substantial increases in real electricity tariffs."

The proposed electricity tariff increase would impact on the output of these sectors, employment and investment decisions, and would have a ripple effect throughout the economy.

Other less electricity-intensive sectors would also be adversely impacted.

"Therefore, the Busa analysis suggests that the tariff increases contained in Eskom's MYPD3 [Multi-Year Price Determination 3] application will have significant negative long-term implications for households, industries, and the economy at large."

This made Nersa's interrogation of the MYPD3 cost estimates all the more crucial, said Busa.

Significant savings were available if a detailed cost assessment of Eskom's MYPD3 application was done.

Busa made this submission to Nersa last week. The research was done by Genesis Analysis, including inputs from Busa members.

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
  • bruce.williams.1044186 - 2012-12-03 17:04

    Finally some good news. I hope they stick to it...

      margaretpatricia.meek - 2012-12-07 16:46

      Hey Bruce..you have no chance...it is an old trick they tell you a high price hike then reduce it marginally so you feel good about it

  • giancarlo.groenewald - 2012-12-03 17:05

    Lower the damn price!

      giancarlo.groenewald - 2012-12-04 23:13

      lol the 2 people that downed that straight answer must be working for eishkom.

  • goyougoodthing - 2012-12-03 17:05

    But it's NOT 61c, anywhere. Even if you buy from Eskom straight the lowest amount is about 68c and that rises rapidly as you consume more than a very small amount. They are lying about this too.

      Klaus - 2012-12-03 17:20

      as you were saying, living in Jhn-northern suburbs, 2 retired persons, our charges are as follows: Reading for 27 days -daily average 27,481 kw ( step 1 - R 0,8952, step 2- R 0,9113= Total R 669,04 BUT - Add on Network Charge R 68.98 Add on Service Charge R 253.41 Add on Demand side management levy R 14.84 Add on VAT 14% R 140.88 Grand total R 1147.15 at usage 742 kw = R 1,5460 per kw/hour / month - R 0,61- This is a FAT LIE !!!!!! This is what we pay after installing Heatpump, gas stove, eco pool pump !!!

      Asif Asmal - 2012-12-03 17:37

      exactly! i don't know where they keep bulls@+tting us about this 61c. I'm paying on the south coast R 1.20/unit. Also i heard municipalities add theit own cost to this which increases their revenue. Sick!!!

      michael.slade.547 - 2012-12-04 06:35

      What is the point of quoting prices which nobody can relate to? It's about as logical as quoting the fuel prices to the petrol station as opposed to what motorists pay at the pump. Take your total electricity charge and divide it by your kwh used and that is the answer

      konstabel.koekemoer - 2012-12-04 08:55

      61c is a wholesale rate. After that the municipalities or whoever does the distribution adds a fat margin and lots of charges/levies. This is where the major rip-off happens as these extra charges have often been increasing at a even higher rate than the Eskom prices. They expect to get away with it because everyone is focused on Eskom.

  • Eterni80 - 2012-12-03 17:14

    with the bonuses they pay out and the profits they are raking in ? they can suck my sweaty armpit.

  • hellodanie - 2012-12-03 17:17

    We already pay some of the most expensive electricity in the world (even more expensive these days than most first world countries!), but this in my mind is mostly due to ineffective municipalities that on-sells electricity at ridicules margins to an ever-increasingly impoverished middle class to the benefit of greedy council thugs.

  • Montagnes.Bleues - 2012-12-03 17:24

    BBBEE beneficiaries at last seeing that they have priced everything SA out of the market, and are running scared from all the exposure of the criminality in and around Nkandla and the fat boy from Limpopo. Well, it's NOT only BEE but the entire ANC = Absolutely No Consequences that have bankrupted SA

  • crracker.crackerr - 2012-12-03 17:31

    Same as with E-tolling. The more you demand the more you can sacrifice later to make so it appears reasonable and benevolent.

  • daleinn - 2012-12-03 17:37

    ELECTRICITY TARIFFS... IS CRIPPLING THE CONSUMER AND THE ECONOMY..CREATES INSTABILITY IN THE MARKET.. ELIMINATES ANY POSSIBILITY OF NEW BUSINESS,JOB CREATION.. TRADE AND INVESTOR CONFIDENCE.. IT ONLY PROMOTES THE WELFARE OF THE GOVERNMENT AND THE SEPERATIST ELITE..

  • quintessential.quintessential.1 - 2012-12-03 17:43

    Why doesn't Eskom provide consumers with the option to put back electricity in the power grid through alternative sources (i.e. wind / solar energy) whereby a user's power consumption could be offset with the power that is input into the power grid. In countries like Germany about 25% of the power is produced through alternative energy sources (by households). Apart from this, if Eskom was serious about managing the electricity resource, it could have introduced a night tariff and day tariff, whereby households would have an incentive to consume electricity in off-peak periods (when industrial consumption is low). Eskom is creating the impression that tariffs must increase (due to much "needed" capital investments on its part in the future) with silly announcements on tv - "to switch off all non-used equipment" and other campaigns which seem very plausible to the average consumer in the SA household, meanwhile, in my opinion this clearly exhibits characteristics of an inefficient, failing state-backed public enterprise which has to sustain the BEE gravy train, along with other political imperatives. (Like Telkom and SAA).

      vernon12345 - 2012-12-03 23:47

      Good idea

  • Suzanne Viljoen - 2012-12-03 17:44

    I am paying R1.40 per kWa already how the hell does it cost 61kWa?

      izak.burger.3 - 2012-12-03 18:13

      I pay around R1.50 a unit as well. It's the municipal markup, and that sliding scale thing: if you use lots of electricity, you pay even more.

  • alberto.dasilva.00 - 2012-12-03 18:16

    Why do these propaganda reports use 61c/kWh when For CoJ on 3part tariff: kWh -> c/kWh -> Total/Month 100 -> 427c -> R427 200 -> 266c -> R531 400 -> 185c -> R740 600 -> 158c -> R950 800 -> 145c -> R1,163 1,000 -> 137c -> R1,375 1,200 -> 133c -> R1,591 Please stop the propaganda - it's not 61c/kWh!!! It much much higher.

  • di.hingley - 2012-12-03 18:21

    Hahahahahaha.....same old trick they do with the petrol price....they give us an inflated price, we all freak out, then they give us a reduced price, we all breathe a sigh of relief, little realizing the reduced price is what they were going to charge us all along!!!!!! So it stops us from really freaking when we pay more because we think it's lower than the "real" intended price!!

  • phillip.dewaal - 2012-12-03 22:57

    Eskom posts Billions of Rands worth of profits, so why the massive hikes?

      rupesh.hari.7 - 2012-12-04 01:46

      how do you expect them to pay themselves a massive f*&^ing bonus? unrealistic question.

  • sally.lewitt - 2012-12-03 23:18

    What....? Are we supposed to be happy about this? We are being ripped and stripped daily by these thieving incompetent people who run and try and manage Eskom plus their partners in crime, the municipalities.. Like everything else.. 10% down up 30% in a few months! Watch this space ><

  • vernon12345 - 2012-12-03 23:46

    Lets sells Zuma's house to lower the rate even further

  • Mary Milne Archibald - 2012-12-04 02:56

    To off set bad debt Eskom should offer pre-paid domestic electricity at a lower rate. This would encourage homes to install metres, no outrageous bills from municipalities. More ready cash in Eskom's coffers. Oh and 10% is still too much.

      zubairab37 - 2013-01-14 19:29

      prepaid in not cheap....i few friends that changed over when the meters were offered for free...they paying more!!! and tha rates vary depending on the area youa re staying in, the timeof the month you buy and this is aslo not consistant with all municipalities. They ripping people off legally

  • brionyl.french - 2012-12-04 05:05

    THEY HAD BETTER

  • Ze Don - 2012-12-04 07:04

    The problem is that someone has to pay for all the ''free'' electricity, hence us paying R1,20 a kwh. Not to mention all the illegal connections and the fact that we supply Zim and Namibia with electricity as well, I doubt they're paying 61c...

  • sisie.indola - 2012-12-04 07:47

    I have a thought - with the Nkandla compound who is going to pay for all that electricity, water, rates and taxes - or is it because he thinks he is "Jesus" he will get it FREE.

      benjamin.mathebula.7 - 2012-12-04 08:15

      if every household can affort a solar panel system, i think this will say something to eskom. yes we pay too much and to eskom it seems they increase tarrif every second, i pray to God oneday we all can affort solar system equipments. kwankadla is everyone's concern, lets threat this two issues differently.

  • jason.rom.9 - 2012-12-04 08:12

    when three quarter of south African lose there jobs don't say sorry !!!!

  • johann.matthews.50 - 2012-12-04 08:25

    Has Eskom sorted out their electricity fraud.... http://www.engineeringnews.co.za/print-version/sadeveloped-system-curbs-electricity-fraud-2002-08-02 maybe they should wake up to where their funds are going....

  • lahsivmoorath - 2012-12-04 12:14

    Why dont they just get households to install solar panel on the roof of your home and have a reverse meter on, so when there is surplus energy on the solar panels it will reverse what you consume, problem sorted out.....

  • zubairab37 - 2013-01-14 19:57

    lets put thing into perspective: - Eksdom profit for the year as at june 2010 - +- 13 billion - monies to eskom by townships - soweto for eg. 3,3 billion - the guy that sits on the corner in the township and pirates elec. to people charges anything between R100,oo and upwards as per a expose on TV - how many people are paying elec. this is my estimate 7mil, contrary to the 49mil - the COJ is broke, kaput...do a proper audit and weed out all the illegal and false bills, COJ is broke - Are we taxed on a basic necc. yes....do we hear goverment complaining NO! - Rumour has it the so called fund that was set up to pay solar geyser rebats might be kaput or broke. - and this is the creme da al creme story, how true is this i don't know but this is what i was told by an electrician...when the so power problem came to the fore the eng. council or some group or elec. engineer's came up with any idea. they looked all the major suburbs in s.a. and concluded. majority of them including golf estates, have dams etc. they could build a small non intrusive electrical power generator using the water available and supply the grid...what did Eksdom say....we not interested. Look this is story i was told but if it true then Eksdom is only interested in money and F**** us over.

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