Urgency is key to private sector participation in electricity generation

14 May 2015

The Democratic Alliance (DA) welcomes National Treasury’s instruction to government’s “war room” to come up with proposals for greater private sector participation in electricity generation.

The DA has long advocated for the breaking of Eskom’s supply monopoly and the opening of the grid to independent power producers. This would increase efficiency and productivity, and it will go far in curtailing political interference.

While encouraging the private sector to supply electricity is a good first step, we will never meaningfully solve the supply crisis unless the management of the national grid is finally taken away from Eskom and their monopoly broken once and for all.

Interrupted power supply has had a serious impact on the economy and job creation, as economists suggest that the ongoing power outages have caused a total loss of production amounting to over R300 billion. It is essential that this downward spiral is stopped.

While this is a step in the right direction, urgency is of utmost importance in order to limit the negative impact our electricity crisis is having on all South Africans and the economy.

I will therefore write to the Minister of Finance, Nhlanhla Nene, requesting he set a 30 day time limit for government’s “war room” to make proposals to Treasury. The ordinary consumer cannot afford to bear the burden of this electricity crisis any longer.

Solving the energy crisis is of paramount importance as a national electricity disaster looms, which will all but destroy our economy and kill thousands of jobs.

Statement issued by David Ross MP, DA Shadow Deputy Minister of Finance, May 14 2015