As you read this, Eskom has submitted a claim application with Nersa (National Energy Regulator of SA). This claim is an attempt to recoup money the company lost between 2014 and 2017, which comes to an estimated amount of R66bn.
If the increase gets Nersa’s approval, the current cost of an electrical unit will rise with roughly 30%. The worst part is that the recouping process Eskom wants to put into action will never stop, even after the money has been recouped.
Why should you use the chance to speak up now?
Those who don’t use this opportunity to speak out against this injustice and insanity reserves their vote for Eskom. In other words, Nersa assumes these individuals don’t have a problem with the increase. And even though Nersa initially found this RCA (Regulatory Clearing Account) claim to be unjustifiable, they have given Eskom time to prove why it should be implemented. It’s also during this time that Nersa invites the public to air their opinion.
If, for some reason, there are individuals who lack the necessary motivation to speak up, please read the summary below. Because it makes sense that Eskom’s losing money, given all the municipal debt that have accumulated because people aren’t paying, right?
Unfortunately, it’s just the tip of the ice berg. And it unfolds into a deep and dark center of corruption and poor management.
- With an estimated 4,000MW of surplus energy for 2018, Eskom is guilty of utilizing stations unnecessarily. Especially the most expensive coal-fired station, Arnot. Nersa suggested they simply look towards shutting it down.
- The price Eskom paid for coal reached an all-time high during the MYPD3 period (2014 – 2017)
- When Eskom applied for the tariff hikes, it included the costs for the renewable energy deals with several different providers. However, none of these contracts were signed or agreed upon at the time.
- Eskom employs 6000 people more than it should, resulting in an expenditure of R3.8bn.
- Eskom overspent on incentive bonuses with 44%.
- The time period for which they want to recoup the money (2014 – 2017) is very peculiar. Mainly because it has been outlined in the State Capture Report as a key period for the notorious Gupta interference.
- Moody’s has downgraded Eskom’s investment status from B1 – B2, even after the new board was appointed.
- The RCA claim Eskom is applying for will become part of the basic system, meaning the tariff will never decrease. Not even when all the money has been recouped.
- The audit that defines whether the claims can be justified is internal. An independent auditor has not been approached to check Eskom’s records.
- Enterprises have to increase prices to cover their costs as consumers pay more at home and in the store.
- Job losses due to bankrupt businesses.
- More power for Eskom to continue on their mismanagement and corrupt system.
- Nersa continues to play the innocent party while it should be keeping a closer eye on Eskom.
- The consumer gets punished for the mistakes and corruption taking place inside Eskom