Direct supply from Eskom would be better
I have read in the media that the majority of the consumers want Eskom to supply them with electricity instead of their municipalities. The municipalities reply that without electricity income they would go turtle. How can that be? According to my understanding of municipal accounts, electricity, water, sewerage and refuse/garden services are “trading accounts” which …
I have read in the media that the majority of the consumers want Eskom to supply them with electricity instead of their municipalities. The municipalities reply that without electricity income they would go turtle. How can that be?
According to my understanding of municipal accounts, electricity, water, sewerage and refuse/garden services are “trading accounts” which means they must not make a surplus. The only account that can make a surplus is the property rates.
From the input of the municipalities they are using revenue from their electricity to fund their property rates, otherwise why not let Eskom satisfy the people? The people need an independent firm of strong auditors to do a due diligence audit on the municipalities to see if expenses are being correctly allocated to the different municipal accounts ie electricity, water, sewerage, refuse/garden services. In particular, the administration budget should be carefully examined as this is where unethical expenses can be disguised.
There is also the need for Eskom and municipalities to eliminate all mistakes in their current system before increasing prices eg illegal connections, bad debts etc. I hear that consumers pay all their other debts before electricity, water etc. No wonder the municipalities have written off R300 million bad debts.
Our growth rate is extremely low (0.09) and increases of 17% in electricity will see us sink to junk status. The 112 year drought has to be taken into account and any increase can only be looked at in 2018.
FRANK DU TOIT
Ballito
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