Eskom to hike rates next year
ESKOM has started preparing to increase its electricity fees next year.
SAVE: CEO Brian Dames.
Photo: Robert TshabalalaEskom CEO Brian Dames told journalists yesterday at the first quarterly state of the power system for 2012 briefing in Sunninghill that the utility had begun the process, that would consider the country's economic growth.
"The decision must be made by the regulator towards the end of this year. Remember it must be tabled in Parliament by next March," Dames said.
"It will all depend on how long the regulator takes. So we will all work with the regulator. We have to be cognisant of where the economy is at and the impact of prices.
"We've got clarity in terms of numbers but it is very important that we work together to ensure that we create alignment in terms of what we then apply (for).
"Most of the work has been done. It is now important that we do more significant work into what is going to happen to the economy in the next years."
In 2010 Nersa granted Eskom an increase of an average of 25% over three years amid the outcry from business and labour on the impact the electricity hikes would have on jobs and the economy.
Dames said the peak demand for summer was slightly higher than expected, which put pressure on the system as they use the summer season to do maintenance.
He said electricity users still had to save 10% of their consumption to decrease pressure on the demand.
Eskom uses the summer season to do maintenance on power stations since winter brings the highest peak to 37MW.
Earliers Dames met executives from the country's largest users of electricity and they committed to using electricity efficiently. While Dames said the situation remained difficult, he said it was different to 2008, when the country experienced load shedding.
"We have said that we won't go back to the national power outages of 2008, but we cannot do it alone as Eskom, nor can we guarantee it," he said.
Public Enterprises Minister Malusi Gigaba said the situation was expected to be relieved in 2013 when the first two units of Medupi Power Station are commissioned.
"Transparency is of essence so that we take the country into confidence . that something is being done in order to navigate the situation. We are confident that the programmes we are implementing should provide relief leading up to 2013," Gigaba said.
maneater
i think VAVI must stand for president he is the only person who seems like he maybe cares for the poor......... underline the word "maybe".Report Abuse
Abdulla-Saleeh
@ManeaterIt's good that you say maybe, let me enlighten you my man, vavi is a fat cat mining magnate.
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Abdulla-Saleeh
@ManeaterIt's good that you say maybe, let me enlighten you my man, vavi is a fat cat mining magnate, masquerading as a champion of the poor.
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Mbeva
@ Maneater. Unfortunately good talkers such as Vavi, Ramphele and Moeletsi Mbeki ‘may be’ bad implementers. Talk is cheap dudeReport Abuse
Se7en
The government won't give additional license to other power companies and yet they own the bulk of Eskom shares hmmm.... I smell a rat. Do you? They are both in it for the loot! In the last few years electricity prices went up by 75%. We are being ripped off. If goverment is really concerned about job creation and growing the economy, why don't allow for competitors to enter the market?This would create millions of jobs at the same time.Report Abuse
CB045
Dames says, "It will all depend on how long the regulator takes. So we will all work with the regulator. We have to be cognisant of where the economy is at and the impact of prices."Is Eskom working for the regulator or for the public? No wonder the public is treated like disposable nappies. When the big brass overspends... no worry, just increase the tarriff since nobody knows the business the way we do.
During the 'good years', profits are pocketed as bonuses and nothing invested for any crisis event such as earthquake or other disasterous occurance. Eskom has a solid foundation. It has the capability to progress with on its own without additional financial injection. But because finance is easy to pick off the general public, management can live a life of luxury. Had money not been so easily accessable and their very jobs depended on their performances, I think we would have a different Eskom today that served South Africa and its people with pride.
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SeshegoGuY
I give up!!!Most departments/provinces can't account for their money meaning we'll have to borrow.... DEBT!!
Eskom increase rates for the 2nd year....... .......INFLATION!!
Toll roads will hit consumers/distributors hard.....INFLATION!!!
Petrol Increases...............................................INFLATION!!!
Hospitals in dire crisis.......................................DEA.TH!!!!!
Education in shambles............................OUR CHILDREN'S FUTURE........
Can we have competent people running this country.... PLEASE GOD, help us!!
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Reyataz
Sure, an electicity hike to give these scumbags fat bonuses whilst we suffer load shedding. The ANC government, in charge of parastatals, is an utter disgrace! But let the low IQ paupers who vote them in suffer even more!Report Abuse
sarmologadi
@seshegoguy, the only way to help our selves is to vote corrupt ppl out cauz our tax is not used effectively, thats y dey keep on sucking us dry...Report Abuse
SeshegoGuY
@Mologadi100% Agree my sister. We wake up everyday at 05h00 working very hard, paying our taxes IN TIME only to have them squandered by the so called "Leaders of the poor". My vote is not gonna go to these corrupt b@stards
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