Eskom price hike will cause 'serious pain'

Beautiful day in Cape Town! Not a breath of wind. Not enough alternative energy for even a slice of toast treehuggers! Escom is pulling a fast one. If we indulge Escom in this (unnecessary) series of increases we also feed into reduced consumer spending = job losses it feeds into inflation which according to the nitwits at Reserve Bank feeds into interest rates.

As for COSATU's kneejerk "tax the wealthy"? Are these people incapable of a single original thought....always the same, punish the people who create jobs. Why is the world run by morons?

The first part of the solution is to get competent engineers with experience.

Eskom have no other choice, even if it means further job losses, businesses foreclosures and industries coming to a standstill.

These hearings are a waste of time. All they’ve achieved is the “community involvement” requirements, to proceed with the process.

They will implement the purposed increases even suffering from "mental blackouts"?

What totally-free, technologically-exploitable, yet infinitely renewable and reliable power-generating resource does sunny South Africa have in absolute ABUNDANCE?

No prizes for guessing, sunny South Africa.

I agree with Atlas. The simplest and most effective idea I have heard is a plan for the government puts in place a decent subsidy for Solar Water heaters (Solar Geysers). If the Government pays half and the house owner pays half we will very quickly (maybe within 18 months) be able to generate an electricity savings equivalent to the power of one coal fired power station - without having to build one or keep it running - free energy basically.

Punish management severely..Set the example..
Change management..Give them 6-12 months...

Then choose people of integrity and honour without self interest..

For example China builds an Eskom in one month.

ESKOM should be listed (NYSE, LSE and/or JSE)

The process worked well for SASOL

This would prove to be a very popular listing and would raise the funding immediately.

The SA Govt could keep 51% of the issued shares to keep the SACP happy.

The Govt could transfer some of its share holding to the COSATU pension fund, which will keep them happy.

By international standards the Capex required by Eskom is not large.

By any business standard or model the Capex cannot come out of tarriffs, unless the intention is to shut the economy down.... then we won't need much electricity anyway, and the whole exercise becomes both futile and self defeating

Open the market to Energy Producers NOW, if Eskom fails then you can buy power from someone else. Prices are then determined by the market. Limit IPP's to 49% foreign ownership though. The IRP was a disgrace, communities should be allowed to generate power and sell it back to the grid.

Eskom will cause harm....blah blah blah, we've heard about that before.

We were told that vehicles would cause harm, so would be cellphones, computers, fridges, airoplanes, the lot. By introducing them to humans, did we see any harm? not at all, instead we're reaping the benefits of hsaving them around.

I believe it would be the same thing with pricve hikes of Eskom's tarriffs, we'll ultimately sow good stuff at the end.

I'm with Eskom on this one-- hike the whole lot.

Globally it is the exact same – why ? Because the deals are cut at the global leaders meetings.

The outcomes are exactly the same – the fat cats get fatter and screw the poor and WE ALL are working for the banks. If the banks fail (all money trails lead back to the bank – including the government), the taxpayer bails them out. We all work for the banks, globally.

If you look at how the money SYSTEM works, paper currency is debt. Money lenders changed to paper from gold ( as a written security) and realised they could charge INTEREST on other peoples money. What is inflation??

Who stands surety for all the money that governments borrow from the Federal / Reserve banks – it is the tax payers because governments do not generate money. How do they repay the HUGE debts ? - TAX and increases in monopolised industries that are people's needs - like electricity.

It is a sickening thought that the Rothschild family (that own the Fed bank in USA and many others) have $500 trillion in their wealth, yup that is right, that is HALF the worlds wealth.

Do you realise that this family’s fortune could end the complete planet’s crises?

Man that is some thought.

In South Africa you have the Ruperts that have their empires.

Time to think out the box and take back the ground that has been lost.

Take back the control from THE BANKS and the governments that are dictated to by the bank owners.

Nice one Village Boy with Diploma! Harm, as in hike will poke the economy. Businesses will suffer, and soon after shut down, and we'll all have to return to the village and wipe our arses on our diplomas. That kind of harm.

It is in the ANC's interests, that eskom stuffed up. Its in the ANC's interests, that the price hikes are as high as they are.

They are profiting from the misfortune, that eskoms blunders have and will cause us.

Unemployment will rise because of the hikes.

Hence, there is no political will, from government, to fix the mess. It seems all the increases, are simply there, to pay for government incompetence. 35% hike for eskom, 1% tax hike for SABC...

I will pay a 35% increase, but, there will be HELL to pay, if my power gets cut off then, or if a power spike takes out another one of my pc's.

Just when we think the ANC induced ESKOM crisis can get no worse we have to find they secured new partners in the shape of the Institute of Directors and Nic Holland of Goldfields. The Institute defending ANC "maorality" and Holland calling for additional tax to be levied. We know who carries this burden...you and I. See full story at:
http://letterdash.com/g.annandale/eskom-make-them-pay

1. COSATU's proposal has some merit - make it 0.5%
2. Entirely privatise one or two underperforming or closed stations.
3. Sell solar and wind kits to the consumer and communities, who can then generate their own electricity. Allow competition from power companies who generate renewable energy.
4. Step up education efforts to try and get people to stop wasting electricity
5. Impose a 5% tariff increase
Problem solved

The threat of losing half a million jobs isn't a deterrent; it's an incentive to hike prices. The economy lost nearly a million jobs last year alone. Losing half that amount over three years as a result of doubling electricity prices isn't going to scare any policy makers. To them, it's a small price to pay and it'll be someone else who will be doing the paying.

There is not a brain amongst them and no man of vision in sight.
The ANC fancies the idea of a price hike - they own shares in this debacle - more money more dividends for them. It is all about feathering the nest and blow all to do with the country and its people. Don't be naive

I would be happy to pay a tax that supplemented the cost of energy efficient devices (CFL & LED lights) and alternative energy methods (Solar & Gas).

I will not do everything in my power to avoid paying tax for an incompetent and corrupt parastatal which has done nothing to show that it has this countries interests at heart.

On top of this, Morega is now sueing Eskom for R85 million if he isnt given his job back. This idiot, lived a lavish lifestyle, at our expense of 5 million year, and all the trimmings. Now, he wants to further cripple our country.

Exile him, he's done more harm to South Africa, then we can fathom.

@Andy Campbell
You are absolutely right. I found that out for myself many years ago and have written an ebook on the subject. I have also rolled in the fact that we must all take climate change more seriously.
With a failed/unsecured global money system that has actually collapsed, the future for our children and grandchildren looks very bleak. Join me and others "out of the box" at:
http://www.bobrobertson.net
Cheers

Use less electricity and find alternative sources and stop chasing talented people.

If you use LESS electricity, the Eskom power-generating monopoly will protect its bottom line simply by INCREASING the price of the electricity that is still being used.

@ The Village Boy with a Diploma:"I'm with Eskom on this one-- hike the whole lot." Do you pay for your electricity or do you also steal it like thousands of other people?

The Escom issue is not simple. Nothing can be done to the past, however we can learn from it.

If Jacob Maroga was honest, his outgoing advice to Escom would be:

Choose between affirmative action and reliable power supply, you cannot have both.

For the USA of Africa,our energy supplier is negligent in relying
on power coal stations and allowing us as consumers to be in this mess.Those responsible for the development of our country need to be punished,removed,replaced and be given 6 months.
No lavish self interest or lifestyle,No fancy bonuses,no creative accounting practices,no fancy anti competitive
practices w.r.t other green technoligies,no nersa,Nno taxing of
green technologies.If the job is not done...too bad.

Bob Roberson

Much as I think you intent good in your book, some of your suggesttions are what the creators of this mess want. In particular, your suggestion in regards to single currency and one global govermnment smell of tyranny. Amongst other factors, the current monetary system was created with one goal in mind, global government, single currency, overseen by the few elite.

The CFR should be on cloud nine hearing your echoes of globalisation.

Just my view that we should be careful in what we suggest, though we may intend good. Borrowing from one of book titles you researched from, 'tyranny of good intentions', is how I would sum up your views regarding the points I raised.

OH PLEEEEASE, The only group to see any kind of pain are the people that actually pay thier utilities bill. A full 80% of blacks don't pay at all, but get the service. (By hook or by crook) As for our beloved ANC well they are going to profit hansomely with the profits they make from all the "linked" tenders.

Eskom and our strucural disabled government got this country in trouble and they are failing to come up with a solution or strategies to curb the situation such as the susidies of solar system equipment or facilities and so on,it is unfair to a people who manages their finance with scrutiny(who tighten their belt where and when necessary)to suffer because of the bosses who failed to manage the company's finance yet they are getting paid fat cheques.That says a lot about the level of incompetence and of people running state owned enterprises,couldn't they achieve this 35% by 10% for atleast 3&1/2 years, what is it really that they've tried.