DA to re-table Cheaper Energy Bill to stabilise SA’s electricity supply

26 May 2019

On the back of another blow to Eskom’s stability, this time the resignation of CEO, Phakamani Hadebe, the Democratic Alliance (DA) will re-table our Independent Systems Market Operator (ISMO) Bill, known as the Cheaper Energy Bill.

It is clear that there was no political will for Mr Hadebe to succeed. Any progress in addressing the systemic rot at the crucial entity was made difficult and this was compounded by the fact that he was held ransom by the trade unions. It is plain as day that the rot is so deep that there is no option but to completely restructure Eskom.

Eskom’s monopolistic stranglehold on electricity production and distribution must be broken. The DA has a plan to stabilise and secure South Africa’s power supply and that is contained in our Cheaper Energy Bill which seeks to break Eskom into two separate entities – a generation and transmission/distribution entity.

This would reduce the cost of electricity, bring about much-needed competition and ensure that South Africa is not being forced to pay for the corruption and mismanagement which has taken place at Eskom.

At the same time, Eskom needs to start trimming the fat around its employment expenses especially considering its bloated workforce.

The DA has also written to the new Speaker of the National Assembly, Thoko Didiza, requesting a debate of national importance on the unfolding financial crisis at Eskom. This followed recent media reports that contractors working at Kusile Power Station have submitted claims totalling R36 billion to the financially crippled Eskom.

Eskom and our economy are in deep trouble. Experts estimate that each stage of rolling blackouts, euphemistically referred to as ‘load shedding’, costs the country R1 billion per stage, per day.

With unacceptably high levels of unemployment, and half of young South Africans unable to find work we need solutions and not more talk shops.

In order to stabilise Eskom, which will now be without a CEO from July, action must be taken. The DA will, therefore, implore other political party’s in the National Assembly to support our Bill, in the best interest of our country, its economy and ultimately, the people.

The DA wishes Mr Hadebe good health and best wishes in his future endeavors.

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 26 May 2019