Eskom mulls ways to plug R225bn hole, hints to more support

Polity.org.za 24 May 2013.

Eskom reaffirmed to the Parliamentary Portfolio Committee on Energy on Friday that it would not, through efficiencies alone, be able to close the R225-billion financial gap arising from the lower-than-requested tariff determination for the coming five years.

Several other responses were, therefore, being pursued, including an initiative to identify whether additional support might be required from the utility’s shareholder, the South African government…

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Eskom should do the right thing

Business Day Live 5 March 2013.

THE decision by the National Energy Regulator of SA (Nersa) to limit power utility Eskom to an 8% average increase a year for the next five years comes as an enormous relief. This is especially true for business, which is under strain from many other things that are making doing business extremely tough. The political pressure to keep the increases down has also been apparent.

Yet within the relief there is room for a few questions to be asked. First, how is it possible for Eskom to ask for a 16% increase every year for five years, and for Nersa to halve this number? Either Nersa’s calculations are horribly wrong, or Eskom’s claim that it is trying its best to keep electricity prices as low as possible is bunkum. The second question is tricky: has Nersa overreacted to political pressure to keep electricity prices low? Is it asking too much of Eskom?

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South Africa’s new nuclear challenges

Mail and Guardian 15 February 2013.

South African authorities will have to address two critical issues as the country faces signing for its new nuclear procurement megaplan.

Funding and human resources capacity are two of the biggest challenges confronting any country embarking on a nuclear energy programme, according to Yukiya Amano, director general of the International Atomic Energy Agency…

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Eskom urged to reduce price hikes

Mail and Guardian 8 February 2013.

The ANC has put its weight behind the call for the power utility to lower its proposed tariff increases.

The ANC this week joined Cosatu in voicing its concerns about Eskom’s proposed tariff increases, insisting that it would have a negative effect on the economy and that the proposed increase – 16% each year for five years – could be decreased.

(Contributer’s note: Interesting – I thought the ANC was the government and that the government is the 100% shareholder in Eskom – thats what a state-owned enterprise is. So the government can just tell Eskom what to do.)

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No more govt support in the offing – Eskom

Engineering News 30 January 2013.

State-owned electricity utility Eskom reaffirmed on Wednesday that it had received no indication in ongoing consultations with government of its willingness to inject further equity into the business, or extend further guarantees to assist Eskom in funding its large-scale capital expenditure programme…

(Contributor’s note: This will anger Cosatu even more!)

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Eskom seeks profit: Cosatu

Business Report 3 December 2012.

Johannesburg – It is clear that Eskom wants to operate like a private company whose main objective is to make more profit, Cosatu said on Monday.

Eskom’s call for the price of electricity to speedily be made cost-reflective was informed by its desire to “completely eliminate government support”, as it said in its Multi-Year Price Determination 2 (MYPD2) application, Congress of SA Trade Unions (Cosatu) spokesman Patrick Craven said.

“It wants to improve its ‘standalone’ credit rating within the MYPD 3 period,” he said…

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