Power to the people: Tell Nersa what you want today
The energy regulator wants to hear from you: what percentage electricity price increase can you take?
MBOMBELA – “Let’s not panic,” president Cyril Ramaphosa said on Wednesday. “In some ways we have been here before and we came out on the other side of the river.”
Linda Grimbeek, COO of the Kruger Lowveld Chamber for Business and Tourism, points out that Mpumalanga had a number of hydroelectric plants, including the historic Belvedere plant in the Blyde River Canyon, which generated enough electricity for the entire province and excess.
They were scrapped to build Kusile in Mpumalanga and Medupi in Limpopo, two monstrosities constructed at massive cost and which cannot deliver – and may become white elephants yet.
“This was free electricity, requiring no coal and capital investment, only a proper maintenance plan. They were all scrapped in favour of building these huge plants that require a frightening amount of coal at a high cost to Eskom and the environment,” Grimbeek said.
“Now we are expected to pay for the so-called ‘investment’ which is not delivering the electricity we had before.”
The power utility is R420 billion in debt. It cites a shortage of generation ability for the load-shedding it reintroduced on Sunday. Monday was the first time in the country’s history it experienced stage four load-shedding.
SEE MORE: Eskom implements stage four load shedding
Household appliances are breaking, people are getting stuck in their garages and security complexes and hospitals whose generators are not meant to run the entire operation need to feed patients. People sit idly at work and companies cannot deliver on time, much to customers’ chagrin.
Large companies, can to an extent, absorb the additional costs of running generators, but over the long term it has a massive impact even on their bottom lines.
“It cuts directly into your profit margin,” one local businesswoman explained.
ALSO SEE: ‘Eskom is sabotaging us’ businesses say
Grimbeek predicted that he would probably say the worst is over and the situation was under control.
“The real wait-and-see will be in the budget speech,” which finance minister Tito Mboweni will deliver on Wednesday, she said.
She added that government cannot afford the type of bailout that Eskom requires, and it will not solve the situation of them not being able to break even.
“The minister will have to consider some of these options to save Eskom and the country.”
READ MORE: Pravin Gordhan’s 9-point rescue plan for Eskom is a spark of hope
• Nersa has requested additional information on the issues raised at the public hearings on Eskom’s request for a 15 per cent tariff increase over the next three years.
- How did price increases between 2016 and 2018 affect your business?
- Will you be able to tolerate further price increases?
- At which percentage increase will you start to convert to alternative energy?
Email Grimbeek with your input today at linda@klcbt.co.za.
