{"id":1522,"date":"2020-09-03T08:03:39","date_gmt":"2020-09-03T06:03:39","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=365932"},"modified":"2020-09-03T08:03:39","modified_gmt":"2020-09-03T06:03:39","slug":"eskom-wants-you-to-pay-more-even-if-it-cannot-keep-the-lights-on","status":"publish","type":"post","link":"https:\/\/interwebdev.co.za\/index.php\/2020\/09\/03\/eskom-wants-you-to-pay-more-even-if-it-cannot-keep-the-lights-on\/","title":{"rendered":"Eskom wants you to pay more, even if it cannot keep the lights on"},"content":{"rendered":"

Eskom wants South Africans to pay more for electricity amidst severe load-shedding<\/strong><\/a> and a history of corruption and mismanagement.<\/p>\n

The power utility recently said South Africans should expect a 15% electricity price increase on 1 April 2021.<\/p>\n

The price hike announcement came at a time when South Africa is suffering the worst bout of load-shedding in history.<\/p>\n

On Wednesday, Eskom implemented stage 4 load-shedding<\/strong><\/a> due to multiple unit breakdowns and high demand.<\/p>\n

The bad news for South Africans is that load-shedding is here to stay in the foreseeable future.<\/p>\n

Eskom told Parliament<\/strong><\/a> it expects power constraints to persist for at least the next year and warned that load-shedding may extend into 2022 depending on the pressure on the system.<\/p>\n

Research by the Council for Scientific and Industrial Research (CSIR)<\/strong><\/a> painted an even gloomier outlook for the country.<\/p>\n

CSIR researchers said South Africa should brace itself for exponential increases to load-shedding until 2022.<\/p>\n

\u201cNot only will load-shedding continue over the next few years \u2013 it will get significantly worse,\u201d the CSIR said.<\/p>\n

Price increases when Eskom cannot keep the lights on<\/h3>\n

Eskom is asking South Africans to pay more for electricity<\/strong><\/a> when many people have lost their jobs or had to take salary cuts because of the economic downturn.<\/p>\n

Adding to the pain is that Eskom cannot even keep the lights on and that most of its problems are self-inflicted through corruption and mismanagement.<\/p>\n

Eskom is therefore expecting South Africans to give it more money in the hope that it will not simply squander or steal the money as it did previously.<\/p>\n

Instead of increasing prices, many stakeholders have urged the power utility to cut costs by reducing its bloated workforce and stopping corrupt contracts.<\/p>\n

Eskom is, however, not really looking at addressing the problem of its large and overpaid workforce.<\/p>\n

It would rather risk damage to the economy through higher electricity costs than touch the sensitive issue of staff cuts.<\/p>\n

Eskom spokesperson Sikonathi Mantshantsha admitted that the cost of electricity is increasing while the service levels are decreasing.<\/p>\n

He also admitted that load-shedding is one of the factors which led to job cuts in South Africa.<\/p>\n

Eskom explains<\/h3>\n

Mantshantsha said the reality is that Eskom is operating ageing infrastructure which has been neglected over the past few years.<\/p>\n

The power utility has also had reducing sales every year which is putting financial pressure on the company.<\/p>\n

He said as South Africa, we do not have the option of doing nothing and allowing Eskom to degenerate into total rot.<\/p>\n

\u201cThe current and future management teams have an obligation to invest in the business to ensure a continuous supply of electricity,\u201d said Mantshantsha.<\/p>\n

This explanation from Eskom is nothing new, but it has continually failed South Africans and squandered the extra money given to it.<\/p>\n

Mantshantsha admitted that Eskom has done a poor job over the past decade in running the company efficiently.<\/p>\n

Despite historical theft and the wasting of taxpayers\u2019 money, he said there is no other option than asking for more money again.<\/p>\n

\u201cWe do not have the option or luxury of pointing fingers,\u201d he said, adding that Eskom must invest in the business for the future.<\/p>\n

He confirmed they have to weed out all the efficiencies which are costing South Africans money, but said that not asking for more money was not an option.<\/p>\n

The question Eskom is not answering<\/h3>\n

Mantshantsha hammered on the fact that Eskom cannot sit back and needs more money to turn the struggling company around.<\/p>\n

He added that Eskom is working hard to recover money lost through corruption and has taken steps to create a more responsible company.<\/p>\n

He said they cannot eradicate corruption and inefficiencies overnight, but that Eskom is doing everything in its power<\/strong><\/a> to \u201ccorrect the ship\u201d.<\/p>\n

While Eskom is talking a big game, many key indicators show that things are getting worse.<\/p>\n

Eskom\u2019s debt has hit a record high of R488-billion as of March 2020 and South Africa is experiencing the worst load-shedding in history.<\/p>\n

Eskom\u2019s energy availability factor, which shows the percentage of Eskom\u2019s generation capacity which is available, has also nosedived in recent years.<\/p>\n

As Mantshantsha promised South Africans that things are changing, MyBroadband asked Eskom the following question:<\/p>\n