Suggestions for Eskom
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D Wolpert
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Published:
2009/10/23 06:21:58 AM
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Eskom chairman Bobby Godsell makes a valiant attempt to shed some light on our current electricity tariff woes in his article (Now for more transparency and a bit of concerted action, October 21).
I am convinced that Eskom is indeed facing a severe financial crisis. Therefore I recommend that the beleaguered parastatal takes one of two steps: either it borrows the capital required backed by a government guarantee, and increases tariffs to cover the interest charges, or it is recapitalised by the government and increases tariffs to finance dividend payments.
The option selected must be accompanied by a rigorous and transparent cost-cutting exercise including the slicing of salaries and bonuses paid to an unsuccessful management team.
My suggestions are neither new nor original, but are far more sensible than the proposed economic decimation of big tariff increases to fund long-term capital investment.
D Wolpert
Rivonia