NUM media statement on Eskom interim financial results
30 November 2018
The National Union of Mineworkers (NUM) has studied the interim financial results as presented by the Thuma Mina board comprised of successful businessmen and women. We have noted that the board is failing to deliver a stimulating long-lasting plan and a sustainable business model. The current trajectory should be derailed.
- The 2035 strategic plan, promised by the board chairman in March 2018 remains concealed and elusive to the public and to the key stakeholders including the NUM.
- The huge decline in profits, R8.9 billion in September 2017 compared to September 2018 has declined to R1 billion. It is a precursor of massive losses expected by the end of March 2019.
- IPPs which have generated R23. 4% of the total percentage of primary energy cost has grown to 29%. South Africans are forced to embrace a huge risk by the Power Purchase Agreement; wherein profits of IPPs are privatized whilst the cost of Renewable Energy is socialized.
- Primary energy cost as it relates to coal will escalate as long as Eskimo does not review the poor performing cost-plus-mines as well as the exploitation of short/medium term contracts managed by Black Emerging Miners.
- Victimization and intimidation of workers through targeted retrenchments, salary cuts, suspensions, and dismissals is demotivating reliable soldiers of an Eskom utility that is capable of generating, transmitting and distribution of reliable power at an affordable price.
We, therefore, call upon the President Cyril Ramaphosa;
- To retire the current board, which has failed to develop a comprehensive turnaround strategy to save ESKOM, from unbundling and privatization.
- Instruct Department of Energy (DOE) to develop a long-term plan with a sustainable Business Plan to improve sales volumes for Eskom
- Cancel the Power Purchase Agreement that is privatizing IPP’s profits, while socializing the cost of Renewable Energy.
Issued by Paris Mashego, NUM Energy Sector Coordinator, 30 November 2018
