Eskom's Electricity Price Hike: Are You Paying Too Much?

Electricity Price Increase: South Africans Face Another Eskom Blow

South Africans are bracing for yet another electricity price hike, following Nersa's confirmation of a R54 billion settlement with Eskom. While Eskom claims to be 'entitled' to these funds, many are questioning the fairness of continually demanding more money from already burdened consumers.

The sentiment is that Eskom is behaving like a drug-dependent adolescent, with the public acting as the credit card fueling their addiction. This raises the critical question: how can citizens challenge the mechanisms that allow Eskom to operate in this manner?

Key Areas of Concern Regarding Eskom's Costs:

• Normalized Interest: Eskom's debt levels are significantly higher than comparable public electrical utilities. Recalculating their profit and loss statement based on industry benchmarks could reveal substantial overspending.
• Bad Debt: Paying customers are effectively subsidizing non-paying customers, particularly municipalities. A normal utility would disconnect these customers, but political considerations prevent Eskom from doing so.
• Sweetheart Deals: Some industries receive electricity at significantly reduced tariffs (e.g., 25% of the normal rate). These subsidies should be transparently funded by the Department of Trade and Industry (DTI), not hidden within electricity tariffs.
• Nonsense Asset Values: Depreciation and return on capital calculations are based on inflated asset values, further contributing to higher electricity prices.

These issues highlight the need for greater transparency and accountability within Eskom. South Africans deserve a fair and sustainable electricity supply, not a system that constantly demands more money without addressing underlying inefficiencies and questionable practices.

The question remains: will ordinary citizens continue to foot the bill for Eskom's financial woes, or will meaningful change finally be implemented?