South Africa's electricity is currently more expensive than electricity in the US, Israel and Mexico and if Eskom gets its 45% tariff increase every year for three years, South Africa will have the most expensive electricity in the world.
We are being told that we have the cheapest electricity in the world and this is not the case.
From 2005 up to the present, electricity prices have increased by 91%, while inflation rose only 35% over the same period. Between 2005 and 2014 our electricity prices on the current proposal would have increased 633%. Shocking!
Turning to why SA should have cheaper electricity prices, it should be noted that the country uses large quantities of coal and have one of the cheapest sources of coal in the world. Unfortunately Eskom does not have its costs and organisation under control and is passing on its problems to consumers, considering that in just one year Eskom's personnel costs rose 33.6%. We seem to be governed by short-term, reactive thinking (damage control) and not long-term thinking and planning.
images reference click here
As ek sulke goed lees dan raak ek sommer negatief in 'n optimistiese manier.
ReplyDeleteHAHA
ReplyDeleteNet SA..