LETTER: Eskom rejig is not enough
The intention to stimulate competition in the generation sector will be limited by the fact that the entities are not wholly independent
The DA welcomes the ANC’s announcement at the state of the nation address last week that Eskom will be split up. However, this is not nearly enough.
Eskom will be unbundled into a holding company, with three separate business entities — generation, transmission and distribution — being wholly owned by the holding company.
This restructuring will entail that each entity has the same holding board. Thus, the intention to stimulate competition in the generation sector of Eskom will be limited by the fact that the entities are not wholly independent entities.
It also does not go far enough by preparing the generation unit for privatisation to place it on an equal competitive footing with other independent power producers. It does not go far enough to allow well-functioning metros to source energy directly from independent energy suppliers. Overall, it does not go far enough to ensure a stable supply of electricity at reduced costs for consumers into the long term.
The DA has the solution with our “cheaper electricity bill” or Independent System and Market Operator Bill, which will allow all of the above to be implemented within Eskom.
The ANC’s plan to address Eskom falls short of the mark to tackle rising electricity costs, increasing municipal nonpayments, the financial crunch and instability in the energy supply.
The DA will continue to fight for a green, clean and cheaper electricity sector for all South Africans.
DA shadow minister of public enterprises