LETTER: Users must pay for power

Enormous numbers of nonpayers raise Eskom’s costs

Over the past decade, electricity tariffs have climbed by 177%. Robust competition and strong regulatory oversight are the only sustainable ways of driving down costs
Over the past decade, electricity tariffs have climbed by 177%. Robust competition and strong regulatory oversight are the only sustainable ways of driving down costs (Siphiwe Sibeko)

Your editorial opinion refers (“Power costs too much for end-user to bear”, November 25).

Until all or at least most users pay, especially for marginal use above some possible base amount, costs will far exceed revenue.

Until all municipalities pay their outstanding debt, Eskom will remain unsustainable. Those who can or must leave the grid will do so, and the diminishing number of payers of scale will destroy the existing model of payers subsidising enormous numbers of nonpayers.

Eskom needs to address this issue urgently.  

Dermot Quinn

Via BusinessLIVE

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