Where will the money come from?

[Daxk]

Hey Darko, looks like you and I are going to be paying higher Property rates.


Eskom May Need to Raise Tariffs 90%, Regulator Says (Update1) - Bloomberg.com

Eskom Holdings Ltd., South Africa’s state power company, may need to raise prices 90 percent to fund expansion plans, according to a regulatory official, increasing costs for business as the nation seeks to shake off a recession.

“At this stage I don’t know any other source other than the tariffs,” Thembani Bukula, a member of the National Energy Regulator of South Africa, told a Johannesburg conference today.

Eskom needs to spend 87 billion rand ($11 billion) in the year ending March 31, and 118 billion rand in the two years after that, as part of a five-year expansion, he said. Another option is to curb the program, originally aimed at preventing a repeat of 2008’s rolling blackouts and mine closures, he added. Eskom has asked for an “interim” 34 percent tariff increase.

The company, which generates 60 percent of the power used in Africa and 95 percent of South Africa’s supply, is building new plants, including the world’s fourth- and fifth-biggest coal-fired sites.

“Prices would be expected to increase by around 90 percent or over 90 percent for 2009-10,” Bukula said, and another 50 percent in the next year. Eskom’s funding options are limited by cuts in its credit rating and weak financial markets, he said.

Moody Investors Service last year reduced the utility’s foreign-currency rating by three levels to Baa2, the second- lowest investment grade.

[ROKZY]

Gee Daxk, why don't you up your pimping business? It looks like prostitution (as well as drinking in public) will be legal during the time of the World Cup.... perhaps another business opportunity for you? Boy, I love South Africa.

Legalizing Prostitution for World Cup 2010

[Daxk]

Rokzy, I had thought of it,but the business economics did'nt make sense, I'm so ugly I would have difficulty finding 10,000 people a month each with .50c, Know anyone who could help?

PS: when did drinking in Public become illegal in SA?

[ROKZY]

Sorry, gotta find the lolly elsewhere if not up with the salt
I'm off to drink my micky in the streets

[Darko]

Originally Posted by Daxk

Hey Darko, looks like you and I are going to be paying higher Property rates.


Eskom May Need to Raise Tariffs 90%, Regulator Says (Update1) - Bloomberg.com

Eskom Holdings Ltd., South Africa’s state power company, may need to raise prices 90 percent to fund expansion plans, according to a regulatory official, increasing costs for business as the nation seeks to shake off a recession.

“At this stage I don’t know any other source other than the tariffs,” Thembani Bukula, a member of the National Energy Regulator of South Africa, told a Johannesburg conference today.

Eskom needs to spend 87 billion rand ($11 billion) in the year ending March 31, and 118 billion rand in the two years after that, as part of a five-year expansion, he said. Another option is to curb the program, originally aimed at preventing a repeat of 2008’s rolling blackouts and mine closures, he added. Eskom has asked for an “interim” 34 percent tariff increase.

The company, which generates 60 percent of the power used in Africa and 95 percent of South Africa’s supply, is building new plants, including the world’s fourth- and fifth-biggest coal-fired sites.

“Prices would be expected to increase by around 90 percent or over 90 percent for 2009-10,” Bukula said, and another 50 percent in the next year. Eskom’s funding options are limited by cuts in its credit rating and weak financial markets, he said.

Moody Investors Service last year reduced the utility’s foreign-currency rating by three levels to Baa2, the second- lowest investment grade.

Yeah, things are really looking good.

What about private investment? I guess in the short term there is no other answer.

[Daxk]

Think they tried that route,
distinct lack of Interest from FDI

[Darko]

Originally Posted by Daxk

Think they tried that route,
distinct lack of Interest from FDI

There was a rumour about GDF Suez building gas fired power plants with 1000MW capacity - funding to come from the markets apparently.

[Daxk]

I thought GDF were more interested in Wind?
Here in Ireland they came up with a better idea, (actually stole it from the Brits)
They are proposing building Lakes across the Natural Glacier Scrape valleys, pumping Seawater into them using wind turbines,said Lakes would then empty back into the sea through Turbines giving cheap,sustainable "Green"Energy.
cost 5 Billion € and within 5 years.
would create huge employment for Irelands Recessed Construction Industry.