(File photo) Photo: Dumisani Sibeko
(File photo) Photo: Dumisani Sibeko

Eskom seeks profit: Cosatu

By SAPA Time of article published Dec 3, 2012

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Johannesburg - It is clear that Eskom wants to operate like a private company whose main objective is to make more profit, Cosatu said on Monday.

Eskom’s call for the price of electricity to speedily be made cost-reflective was informed by its desire to “completely eliminate government support”, as it said in its Multi-Year Price Determination 2 (MYPD2) application, Congress of SA Trade Unions (Cosatu) spokesman Patrick Craven said.

“It wants to improve its 'standalone' credit rating within the MYPD 3 period,” he said.

Eskom wanted its return on assets (an indicator of how much profit a company generates for each R1 in assets) to increase from 0.9 percent to 7.8 percent over the MYPD 3 period. This was 767

percent over the period.

“Cosatu repeats its call that Eskom must operate according to developmental objectives of the country and not like a profit-thirsty monster it has become,” Craven said.

The MYPD 2 ends on March 31, with new tariffs to be implemented from April.

The National Energy Regulator of SA (Nersa) would announce its final decision on these tariffs in February, following an extended period of consultation and public hearings.

Cosatu welcomed the opportunity to make representations to Nersa about the MYPD 3. - Sapa

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