Thursday, 3 April 2014

FREE Electricity For The People - UBUNTU Party

UBUNTU Party Explains Free Electricity for Domestic Consumers
Between 2003 and 2013 the cost of electricity rose from 19.9c/kWh to 128c/kWh.  According to ESKOM this massive increase of 543% was necessary in order to obtain a higher credit rating, which would enable the utility to finance its future capital expansion at a slightly lower rate of interest. 
This aim was realised in January 2014 when Fitch Ratings granted ESKOM a rating of AAA. The hidden and real purpose of this foolish and criminal exercise was nothing more than a devious scheme to fleece more money from hard-pressed consumers in order to enrich the bankers, who create ESKOM’s loans out of thin air.  If ESKOM had been able to fund all its capital expenditure at 0% from a People’s Bank, most of this increase would have been superfluous.
In 2013 ESKOM recorded sales of R126.66 billion. The sectoral components of these sales in percentage terms was as follows:
Domestic                 18.5
Agriculture               2.3
Mining                    18.0
Manufacturing        43.7
Commercial            9.1
Transport                3.1
General                   5.2

The domestic proportion of total sales amounted to R23.4 billion.  Interest paid is reflected in the accounts as R9.968 billion.  However, this is not the full amount, as R9.996 billion is equivalent to an interest rate of 4.9% per annum on outstanding loans of R203 billion. 

If one adjusts the interest rate to 9% per annum, which allows for the lower rate of interest on bonds denominated in foreign currencies, then at least R18.27 billion in interest was paid by ESKOM.  This sum comes close to matching the R23.4 billion paid by domestic consumers.

95% of ESKOM’s power is derived from coal with balance coming from the nuclear plant at Koeberg in the Western Cape.  The UBUNTU Party proposes the introduction of a number of alternative energy sources, which are far cheaper and cleaner, but that are ignored because they will undermine the profit margins of ESKOM and its corporate partners in this massive extortion of our people.

While the obvious alternatives like solar, wind and hydro-electricity are almost completely ignored by our leaders, there have been numerous discoveries made by inventors and scientist in South Africa and the rest of the world that can provide extremely cost effective energy in both the automotive and industrial sectors.

The UBUNTU Party will tirelessly promote the introduction of such technologies.