ESKOM'S ADJUSTED APPLICATION FOR INCREASE STILL SCANDALOUS
The Freedom Front Plus rejects with the necessary contempt the latest increase proposal of 35% which Eskom has made to the National Energy Regulator of South Africa (NERSA) and regards it as scandalous that Eskom still expects the consumers and taxpayers to pay for their mistakes. "It is clear that the lights of the leadership of the Eskom Board have not been on for some time," Adv. Anton Alberts, FF Plus parliamentary spokesperson on Energy said.
The FF Plus had warned in the past that the provision of government guarantees would possibly not really prevent price increases. It is a pity that this has now become a reality. This state of affairs attests of uncreative and poor leadership.
It appears that the Eskom Board can or does not want to see the seriousness of the tariff increases. The planned increase of 35% will, just as with the previously proposed 45% increase, bring South Africa 's economy to its knees. Electricity is the backbone of any modern economy and without it we will quickly move backward to the pre-industrial days of history. That is why the FF Plus would like to know from the Ministers of Energy, Dipuo Peters and Finance, Pravin Gordhan, why guarantees were given to Eskom to acquire more debt if the price increases are still to be so drastic?
According to Adv. Alberts, the government should rather seriously consider the following steps in order to meet the power crisis:
- Fully opening up the power generation market and the speedy issuing of private power generation licenses to competent businesses;
- Systematically privatising Eskom which would lead to new influx of capital;
- Tax exemptions to investors in alternative energy for businesses and households.
The FF Plus will be directing questions to the relevant Ministers in Parliament. The FF Plus is furthermore also investigating the possibility of referring the whole matter which had given rise to the current dilemma in Eskom, to the Public Protector for further steps.
Statement issued by Adv. Anton Alberts, Freedom Front Plus Parliamentary Spokesperson: Energy, December 1 2009
Click here to sign up to receive our free daily headline email newsletter
