EFF statement rejecting the electricity privatisation agenda

17 August 2024

The Economic Freedom Fighters (EFF) unapologetically rejects the Electricity Regulation Amendment Act, recently signed into law by President Cyril Ramaphosa.

This Act represents a blatant attempt to privatise South Africa's electricity generation, a move that will only deepen the suffering of our people and entrench the control of corrupt elites over our nation's most vital resources.

We have consistently stated that Pravin Gordhan, who used to be at the helm of Public Enterprises, is the chief architect of this disaster. Under his watch, every State-Owned Enterprise (SOE) in South Africa has been driven to the brink of collapse. From Eskom to South African Airways, Transnet to Denel, Gordhan's legacy is one of unparalleled destruction, mismanagement, and corruption. He has deliberately weakened these institutions, not out of incompetence, but as part of a calculated plan to justify their privatisation. This treachery has now culminated in the signing of this Act, which seeks to dismantle Eskom and sell it off to the highest bidder.

The catastrophic collapse of electricity generation, the intentional neglect of power station maintenance, the outrageous overpricing of coal purchased from entities like Glencore and Shanduka—all were orchestrated to create a manufactured crisis. This crisis was used as a pretext to introduce so-called "competitive electricity trading," which in reality is nothing more than a gateway to full-scale privatisation, where profits are prioritised over the needs of our people.

The truth is that Cyril Ramaphosa and his accomplices are selling out the future of South Africa. They have no interest in the sustainable and affordable generation of electricity for the masses. Their only concern is lining their own pockets and those of their capitalist allies.

This is why the EFF is the only political party that has consistently tabled a coherent and realistic plan to resolve the electricity crisis. We have stated that South Africa needs to invest in repairing the existing fleet of power generation, implement clean coal technologies, and reduce the electricity demand of major industrial users through economically viable strategies.

Additionally, we need to revoke the preferential tariff deals signed with major industrial users during apartheid, which have unfairly subsidised wealthy corporations at the expense of ordinary South Africans. An equitable tariff structure that prioritises affordability for households and small businesses is necessary.

Furthermore, while the EFF is fully committed to renewable energy, we cannot abandon South Africa's vast coal reserves. Our coal resources should be used strategically to support energy security and economic development, while minimising environmental harm. We should also be fiercely protective of our coal exports, ensuring that South Africa benefits fully from its natural resources. The EFF's approach guarantees that South Africa's energy sector serves the people, not the profit-driven interests of the few.

The control of South Africa's energy generation capacity belongs to the people, and we will fight with every means necessary to ensure that it remains so. The EFF rejects this electricity privatisation Bill and will, in our Parliament portfolio committees, scrutinise every agreement made with the neocolonial entities of the World Bank, IMF, and European powers that compromise South Africa's energy sovereignty. We will fight for all energy policies and agreements to serve the interests of our people first.

Issued by Leigh-Ann Mathys, National Spokesperson, EFF, 19 August 2024