End Eskom’s monopoly, says DA

To add to Eskom's woes, workers at the Medupi power station in Lephalale, Limpopo, embarked on a one-day strike earlier this week to protest at their poor living conditions while demanding higher pay. File photo: Siphiwe Sibeko

To add to Eskom's woes, workers at the Medupi power station in Lephalale, Limpopo, embarked on a one-day strike earlier this week to protest at their poor living conditions while demanding higher pay. File photo: Siphiwe Sibeko

Published Mar 27, 2015

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Johannesburg - The Democratic Alliance has come up with several proposals to help solve the country’s electricity crisis, which include ending Eskom’s monopoly and moving the management of the power grid to a separate entity to allow more private players.

The party’s leaders on Thursday briefed the media on the key reforms needed at the struggling power utility, as well the turmoil on its board.

The party also released a 16-page position paper detailing how a turnaround could be achieved, from long-term initiatives like the hydropower Grand Inga Project, to more short-term initiatives like decreasing the purchasing of diesel.

“I think without fail this particular position paper that we’re putting forward takes place in a time where South Africa is experiencing not only load shedding, but as you can see, there’s turmoil in the Eskom executive,” DA parliamentary leader Mmusi Maimane said.

He added it was very clear that the turmoil began with the suspension of several top executives and the announcement of an inquiry into Eskom’s affairs by board chairman Zola Tsotsi.

“What is more critical in fact is that it has emerged that President Jacob Zuma himself instructed Mr Tsotsi to launch the inquiry (which) was then used subsequently to suspend the executives at Eskom. The president’s personal intervention begs the question: What could his motives be?” Maimane asked.

DA energy spokesman Gordon Mackay said the party proposed four “very urgent” policy interventions through the department of energy.

“The first of these is very fundamentally about introducing competition into the energy sector. We don’t necessarily want to privatise Eskom.

“What we do want to do, however, is to increase competition within the energy sector to make Eskom far more efficient in producing energy at the lowest possible cost,” Mackay said.

He added that the Independent System Market Operator Bill would assist in relocating the management under a separate entity.

Mackay said the second intervention should be the updating of the Integrated Resource Plan on what energy sources best suit the country’s immediate energy needs.

Thirdly, he called on the government to publish the Gas Utilisation Master Plan, which will provide clarity on South Africa’s contemplated investment in gas.

“The fourth and final point is this whole idea of embedded generation. Embedded generation is a very simple term for people sticking solar panels on their roofs. Individuals are themselves becoming generators of power for their own use within their households,” Mackay pointed out.

DA leader Helen Zille said the past 17 years had resulted in bad policy decisions, despite good advice given in 1998.

“The ANC’s refusal to end the state monopoly on electricity supply was based on maintaining a closed enrichment scheme,” Zille said.

Responding to the latest developments on Thursday, the Presidency said Zuma has been kept fully briefed about developments at Eskom and the attempts being made by Minister of Public Enterprises Lynne Brown and the board to meet the energy challenges facing the country.

The Star

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