WIVL presentation on Eskom proposals Eskom made new

WIVL presentation on Eskom proposals Eskom made new submission 18 March 2008 for further revision of 14. 2% increase granted Nersa paper issued 8 April 2008 Call for objections deadline 29 April One hearing 23 May (register 19 May) www. workersinternational. org. za

Summary of reasons presented by Eskom Coal and oil prices have gone up Generators run extensively Need for reduce consumption and increase saving Needs to show that it can make a profit so that it can get loans Steep prices and cut-offs will teach people to conserve electricity www. workersinternational. org. za

Summary of Eskom proposals Claims a generation capacity shortage More coal on spot market (higher price) – [they ran down 65 day reserve] Want to pass on full energy costs Energy saving cost R 6, 3 bn (2 years) Conversion to gas stoves Standard offer (energy efficiency proj) Reject block tariff www. workersinternational. org. za

Eskom scenario 5 Category % Incr 2008/9 %incr rate 2009/0 Rate rate US c Homelite 60 A +30% (50, 93 c) 66, 21 cents 50% 99, 32 12, 41 Homelite 20 A +30% (45, 23 c) Homepower +70% (29, 45 c) 58, 85 50% 88, 28 11, 03 50, 07 50% 75, 11 9, 40 Industry (16 c) Industry (12 c) +63% 26, 08 50% 39, 12 4, 89 +63% 19, 56 50% 29, 34 3, 66 www. workersinternational. org. za

Impact of Eskom proposals R 12, 7 Bn profit min annual profit Mass disconnections Poor and lower middle class subsidize big capital Big capital still pay the cheapest while residents pay more than France, USA and Canada All other prices will be pushed up (that depend on electricity) www. workersinternational. org. za

What can we do? Lodge objections by 29 April 2008 (eskomprice 2008_9@nersa. org. za or fax 012 4014700 ) Fax also Office of Presidency 012 3005755 Mobilise petition (1 million signatures) Set up high price committees Mobilising meetings up to marches to 2010 stadiums in May 2008 www. workersinternational. org. za