Wednesday, February 24, 2010

Eskom gets a whopping big increase Ouch!

Shocking

Eskom just another run down South African milking machine gets a 25% tariff increase which we the cash cows will pay

Nersa announced it was granting the power utility a 24,8% tariff increase for 2010, 25,8 % for 2011, and 25,9 % for 2012.

The Congress of SA Trade Unions (Cosatu) called the hikes -- more than four times the current rate of inflation -- "totally unacceptable".
..
Unfair on consumers
Opposition parties said the hikes would result in consumers paying for the failures of the ANC, and would raise funds for the ruling party through its part-ownership of Hitachi Power Africa.

"The announcement of yet another hike demonstrates that the ANC administration has once again fallen prey to precisely the same misguided logic that has dominated the ANC's approach to parastatals over the last decade," DA spokesperson Manie van Dyk said.

The Independent Democrats (ID) warned the hikes "will cripple our economy, consumers and small businesses and has committed us to a coal-fired energy future South Africa and the world can ill-afford".

ID energy spokesperson Lance Greyling said it meant ordinary South Africans would be forking out money for electricity which would go to the ANC's investment company Chancellor House.

According to media reports, the ANC is set to earn billions of rands through tenders given by Eskom to Hitachi. Chancellor House owns 25% of Hitachi.

United Democratic Movement leader Bantu Holomisa also warned the increases were likely to lead to higher unemployment, and also linked the higher tariffs to the ANC's business interests in Hitachi's contracts with Eskom.

But, Energy Minister Dipuo Peters said she "respects" the "necessary" immediate increase of 24,8%.

"It has become necessary to conclude the price path for the electricity industry to eliminate the uncertainty around the funding of the capital programme for the sector," Peters said.

Eskom itself, said it had "noted" Nersa's announcement.

"Eskom is currently studying the full details of the determination and is in consultation with key stakeholders.

"We will make further comment on the determination and its specific implications," Eskom acting chairman Mpho Makwana said