Monday, May 18, 2009

Turn off the Switch


Or so we might have to do to save costs if Eskom succeeds in obtaining approval from the National Energy Regulator (NERSA) for its proposed 34% price hike in electricity tariffs.

The application has been officially made to NERSA which in turn has published notices in the press calling for all stakeholders and the public to comment by 2nd June 2009.

Eskom is asking for an unusually large hike in order to obtain funding for its capital expansion projects. These projects are designed to ensure an adequate supply of electricity for the future.

Master Builders KwaZulu-Natal is a member of Business Unity SA (BUSA) through Master Builders South Africa (MBSA), and thus has a voice through BUSA to Eskom. MBSA has also been officially informed of Eskom’s application, and comments have been invited. (Eskom’s Briefing note will be uploaded to our new Website, Friday 22 May 2009)

SA appears to be in a Catch-22 situation. We can’t afford a massive tariff increase just as we enter an economic recession but if Eskom doesn’t build more capacity, we will not be able to expand our economy and create jobs going forward. The international capital markets won’t lend us money, so it’s now up to John Citizen to rescue the situation. And he is getting poorer by the month.

Comments can be submitted via ourselves to MBSA and to BUSA which will use them in its representations, or directly to Eskominterimprice2009@nersa.org.za

Clive Hill
Financial Services Manager

CONSULT YOUR ASSOCIATION.
WE ARE HERE TO HELP YOU !

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