SACP STATEMENT ON THE ELECTRICTY TARRIFS INCREASES

The SACP notes the increases announced by NERSA today of 24,8% for the year 2010, 25,8% for the year 2011 and 25,9 for the year 2012.

This is a catastrophic betrayal of the poor of our country who are bearing the brunt of the pursuance of a neo-liberal economic regime that did not encourage increased state investment where it mattered the most. That the majority of our people are expected to pay for the blunders of the elite is indeed very sad. Government ignored well timed and considered advice to invest in the infrastructure development projects of Eskom and it is incorrect to continue to punish the poor for this.

We are hugely disappointed by this ruling and we will continue to work with our fraternal allies to find a long lasting solution to the energy problems facing our country including electricity generation in a more sustainable, efficient and environmental friendly way. We will also work towards the revival of the nationwide campaign to use electricity wisely and to convert to other alternative sources of renewable energy.

We need to deal with issues relating to electricity tariffs hikes in conjunction with the governance problems that have besieged the utility. Government as the shareholder needs to act swiftly to restore stability and credibility at Eskom at governance level. Equally, the much talked about review of SOEs, details of which are yet unknown, needs to be made public and fast-tracked. For the SACP, one thing is certain: the corporatisation of state owned entities have only served to enrich the few who serve in boards and are appointed CEO's whilst service to the people have deteriorated drastically. This paradigm has to radically change.

Statement issued by Malesela Maleka, SACP spokesperson, February 24 2010

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