In an ailing business the first thing most business people do is reduce costs – this is the easiest thing to do.
Most will first look externally to find other cheaper or more reliable or more long lasting sources of supply.
Then they will look internally to weed out the rot, the coasters, the more expensive employees, the expense accounts, the bloat.
Finally they will look at increasing sales and margins.
In Eskoms case they have a number of ‘nation building’ imperatives (OR, as most will explain; “Greedy politicians needing votes, new cars and overseas holidays”) holding them back from implementing many of the above.
So, where do executives of Eskom turn to make cuts?
- Beat up coal producers – now that the Guptas and their ilk have receded from the picture one hopes that a more transparent and fair purchasing regime will resume.
- Beat up consumers – with it’s monopoly Eskom can now ‘punish’ consumers for being unpatriotic (by making private plans to ensure some semblance of normal supply via solar energy) by introducing new and more imaginative tariffs.
The latest one is the proposal to introduce a fixed cost component as; “solar power and renewable energy producers are using less electricity”! So what was the point then of all the Inclined Block Tariffs that thumped consumers if they used too much electricity?
My take on this is that Eskom are making a case for a FIXED MONTHLY electricity charge as they are acutely aware of the ‘danger’ that private renewable energy presents to their turnover – electricity generated from solar panels means less money. They are trying to make a case for an increased monthly fixed cost in order to ‘support the infrastructure’. In so dong they are acting like Typical politicians and not seasoned businessmen – they have fucked up Eskom by NOT doing maintenance and attending to the infrastructure and now turn to a ‘tax’ on the consumer based on a scare tactic – racism/apartheid in another form.