> From: [email protected]
> To: [email protected]
> Subject: FW: [CJN!SA] (Fwd) Eskom subsidies to BHP Billiton: R1.4 bn last
> year (CT capital revolts)
> Date: Wed, 13 Jul 2011 10:45:16 +0200
>
>
>
> -----Original Message-----
> From: [email protected]
> [mailto:[email protected]] On Behalf Of Patrick Bond
> Sent: 12 July 2011 10:35 PM
> To: CJN!SA
> Subject: [CJN!SA] (Fwd) Eskom subsidies to BHP Billiton: R1.4 bn last year
> (CT capital revolts)
>
>
> (Sowetans are burning councilors' houses. Capitalists are burning
> bridges to Melbourne.)
>
> http://saaea.blogspot.com/2011/07/eskom-report-grim-reading.html
>
> Friday, July 1, 2011
>
> Eskom Report Grim Reading
>
> ESKOM may be pleased with its performance and its profit of R8.4 billion
> last year but its annual report makes grim reading for business, says
> the Cape Chamber of Commerce.
> "The report reveals that we subsidised the aluminium smelting industry
> in Kwa-Zulu Natal by R1.4 billion in the last financial year and that
> without this loss Eskom would have made a profit of nearly R10 billion",
> said Mr Michael Bagraim, President of the Chamber.
> He said the profit was entirely due to high tariffs and Eskom now wanted
> further tariff increases of about 25 percent in the three-year period
> from 2013 to 2016.
> According to the report, the average selling price of electricity was
> 24.4 cents a unit in 2009 and it will be just over 50 cents this year.
> When the proposed new increases were added to those already approved the
> average price would be nearly than R1 in 2014. "This will be something
> like a 400 percent increase in six years and the effect on the economy
> will be devastating," Mr Bagraim said.
> "I don't think any other industry could get away with tariff increases
> of 400 percent in six years and survive."
> Mr Peter Haylett, chairman of the Chamber's Industrial Focus Portfolio
> Committee, said the increases and the projected future increases would
> make Eskom electricity more expensive than some forms of alternate
> energy. In particular it made electricity from combined cycle gas
> turbines viable and the development of a major gas industry had now
> become a priority in order reduce dependence on Eskom.
> "Some companies are already planning to generate their own electricity
> using solar and wind power and we can expect to see this trend grow."
> He pointed out that a supermarket group had already installed solar
> panels on the roof of one store in Gauteng and we could expect more. "In
> the Cape the Villiera wine farm has put hundreds of solar panels on its
> cellar roofs and is now self-sufficient for most of the year."
> He said there was also a great need to save electricity by using it more
> efficiently but this was difficult for industry as there was no
> alternative way to run machinery while the plastics industry, for
> instance, could not use less electricity with cutting back production.
> "These high electricity costs will make it more difficult for local
> manufacturers to compete with imported products and exporters will find
> that their ability to compete in the global markets is being eroded."
>
>
>
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