Eskom downgrading – DA calls for government action

Statement by Manie van Dyk MP, DA Spokesperson on Public Enterprises.

In light of the downgrading of Eskom by Moody’s Rating Agency, and pending ratings by Standard & Poor’s and Fitch rating agencies, the Democratic Alliance (DA) calls on the government to provide a clear plan on how it is going to help Eskom raise the R343 billion for its capital expansion programme without resorting to tariff increases.

Government is the only shareholder in Eskom and should thus adopt actions that will bolster the utility’s plummeting credit rating, and ensure that the South African public is receiving the service from Eskom it deserves.

It is a matter of concern that the downgrading comes at a time when the business community and South Africans are reeling from soaring food and fuel prices – any further tariff hikes by Eskom will negatively affect our growth prospects.

Load shedding News – DA calls for detailed timetable on electricity tariff hikes

The Democratic Alliance announced last Thursday that it had written to Public Enterprises Minister Alec Erwin asking him to publish a detailed time-table reflecting the proposed magnitude and time frame of price hikes over the next three years.

“We have also asked for information on how performance bonuses are determined and furthermore, for a firm commitment that no performance and bonus shares will be paid at the end of this month,” said party public enterprises spokesperson, Manie van Dyk.

“Eskom and the government’s inability to fix on a clear proposal for electricity price increases is doing little to mitigate the damaging effects of the crisis on corporate South Africa and the greater public.”

Load shedding News – DA reacts to 60 percent tariff hike proposal

The Democratic Alliance last Wednesday renewed its call for an independent inquiry into Eskom, in the wake of the announcement of Eskom’s call for a 60% nominal tariff hike last week.

“The DA shares the public’s outrage over revelations that Eskom has requested a 60 percent hike in electricity tariffs,” the party’s public enterprises spokesperson Manie van Dyk said.

“Industry and the greater public, already struggling with rising fuel and food prices amid mounting inflation, are now faced with the possibility of this massive hike in electricity prices.”

“It is seven times higher than inflation and will put upward pressure on both inflation and interest rates.”

Load shedding News – Eskom Bonuses, development stoppages and the minister’s salary

STOP BONUS PAYMENTS TO ESKOM MANAGEMENT!

The Democratic Alliance has slammed the proposal that shares to the possible value of R10m be awarded to Eskom management.

DA spokesperson on public enterprises Manie van Dyk said the awarding of such shares would be outrageous, given that South Africans were bearing the brunt of extreme negligence on the part of Eskom management.

Van Dyk would be writing to the Minister of Public Enterprises and the chief executive officer of Eskom in an effort to prevent these bonuses from being paid out.

“This money should rather be diverted into Eskom’s coal procurement or capital expansion plan.”

A lack of planning has seen massive rolling blackouts sweeping across South Africa, and the economy being hit because big industry it cannot reach its production targets. Citizens have also been trapped in lifts and in huge traffic jams amid periodic shortages of electricity.

An group calling itself the Powergroup has started an online petition to stop Eskom from paying bonuses. Click here to sign the petition.

DA presses Eskom CEO about development stoppage