Independent energy analyst Ted Blom is adamant that Eskom's pricing mechanisms are not justified, and will delve into why at this year's African Utility Week conference.
The power giant uses cost reflective pricing, one which reflects the true cost of supplying electricity, to justify its electricity tariff increases, says Blom.
Eskom is very opposed to me tackling this subject....They say that they must recover all they have incurred. My point of contention is that that is absolute nonsense.— Ted Blom, Independent energy analyst
According to Blom, the utility faces no market competition and cannot motivate tariff hikes with with its current billing system.
You can't work on the issue of cost recovery in a monopolistic society, you can only have it in an open market economy.— Ted Blom, Independent energy analyst
Blom explains that the costs of generating coal-based electricity are far less than perceived to be by the public.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies: