Put the pork skin and bone (smoked ham hock) into a 5-quart pot with the water. Heat to boiling, then reduce to a simmer. Cover the pot and simmer for 45 minutes. Skim the foam from the broth once or twice.
Meanwhile, prepare the collards: Cut away the very thick part of stems. Wash the collard greens thoroughly, since they can be very gritty. Drain them by shaking off any excess water and chop them into small pieces.
Stir the collard greens into the pot and add the salt, red pepper and sugar. Drizzle all with the bacon drippings. Cook, covered, at a lively simmer until the collard greens are tender, about 20 minutes.
Turn off the heat and check the seasonings. Cover the pot and let the collard greens sit a few minutes before serving.