Tuesday, June 30, 2015

Cape Chamber of Commerce and Industry says Eskom must start cutting costs

Jaimie-faith Poonah
30 June 2015

The Cape Chamber of Commerce and Industry welcomed the National Energy Regulator of South Africa’s decision not to grant Eskom a tariff hike.

The Chambers President Janine Myburgh said Eskom must now cut costs which would include introducing wage freezes and closing executive canteens.

The power utility said it needed the additional 9.5% increase to buy diesel and to try and curb load shedding.

Myburgh said the big problem is that Eskom is paying too much for coal and diesel it is buying, we need to see more transparently on these deals and Eskom will have to do some hard negotiations to get its procurements costs under control.
Myburgh added that the fact that the new power stations are so far behind schedule and over budget as well as the huge maintenance backlogs, is a clear indication that things have become relaxed and insufficient.

“It is wrong to expect your customers to pay for your insufficiency” Myburgh concluded. 



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