Thursday, September 10, 2009

Power price increase will be shocking

SHOOT: And it seems the educated don't really want to talk about energy because apparently it's not relevant. Reality can sometimes come as a shock when you postpone dealing with it.
clipped from

THERE was a tough message for electricity consumers yesterday from the chief executive of Eskom, Jacob Maroga: “Brace yourself, next year’s power price increase will be shocking.”

Yesterday, Maroga would neither confirm nor deny one MP’s suggestion in a parliamentary committee meeting on Tuesday that the next increase might be above 40% — but indications are that it will be higher.

The power utility introduced a 31.3% tariff increase in July that is only now being felt by already struggling consumers.

Eskom is running at a loss.

If it is to cover increases in the price of coal and provide for repayments on the loans it will have to take to fund the construction programme, consumers can expect the utility to put in a medium-term application for an increase similar to last year’s rejected 60%.

I am not happy. My belief is that you grew up in a rural area yourself and you understand how price increases affect the poor people.
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