Return to mumbling (redux)

Since my recent post outlining how the distraction Eskom’s proposed higher charges distracted us from more important considerations such as their underlying efficiency, new evidence has emerged validating another point from my original post, Mumbling in the Dark.

The DA has released a confidential report outlining how Eskom has been selling heavily discounted electricity, sometimes at increased discounts at the same time as increasing charges to ordinary users. This effectively makes the point I made around inappropriately lower tariffs being more of a problem than possible tariff hikes. Moneyweb reported on this too.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.