> 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." > > > > -- > You are subscribed to the "ClimateJusticeNow!SA" group on GoogleGroups. > To post : [email protected] > To unsubscribe : [email protected] > For more options : > http://groups.google.co.za/group/climatejusticesa?hl=en?hl=en >
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