We republish an old article from 2007, which is still relevant today. We wish to emphasize that Eskom has sufficient income. There is no reason for any debt and there is no reason for any increase in tariffs for household users. Rather the central theme should be that the subsidy to big capital, who still pay less that 20 cents per KWh, should be ended. Currently househols pay over R1.60 per Kwh. Business uses 80% of electricity but only pay for 57% of the cost. Eskom should be placed under workers control, not privatised. we have updated some elements of the article, such as our email address. It's lessons are still relevant. Unfortunately no one took us serious in 2007. Hopefully the workers' movement can wage an intense struggle to stop the privatization of electricity and for expanded subsidy to the unemployed, pensioners and working class. Essentially, it need a political solution, namely the removal of the ANC-DA governments from power.
The Blackout scam- How workers are subsidizing big capital
It costs Eskom 16 cents per KiloWatt Hour (KWh) to produce electricity. It charges industry only 16 cents per KWh while the general public has to pay 44 cents per KWh. Large customers of Eskom like BHP Billiton, pays even less, about 12 cents per KWh. This means that the working and lower middle class are subsidizing the electricity cost of big capital. Residential use of electricity is only 19%, while industry uses about 80% of the overall total. But in terms of cost, residential users pay 43% while industry pays only 57%. In the past year BHP Billiton made a profit of R 6 Billion. Clearly the entire working class are subsidizing their profits.