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DA condemns tariff hike, calls for sector reform

25 June 2009

Today’s decision to grant Eskom a 31.3% tariff rise for the 2009-10 financial year illustrates the failure of the ANC’s policies that have promoted an uncompetitive, inefficient energy sector, says DA Shadow Minister for Energy, Sej Motau.

“The Democratic Alliance (DA) has stated repeatedly that a tariff hike of this nature will have vastly detrimental consequences for South Africa’s poorest citizens, and we are deeply concerned that government is sitting idly by while the fundamental problems within Eskom, and the energy sector more broadly, are not adequately addressed.”

Read the full statement >>

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One comment

  1. CIC has just revealed that Eskom has failed to come to any sort of agreement on the purchase of power from Mmamabula in Botswana. The Mmamabulapower station is far advanced, and could have 1200 MW available for sale by 2013. However, Eskom says until it gets clarity on its funding, it cannot commit.
    This is idiotic. NERSA has just ruled on feedin tariffs for renewable energy. Whatever alse, the tariffs for Mmamabula would be significantly less than any of the renewable power, yet Eskom has been falling over itself to find the desired renewable energy. Mmamabula is another of those independent power producers that Government wishes to encourage, all of which have been cold-shouldered by Eskom. Nersa isn’t doing anything to suggest a feedin tariff. And Eskom has recently announced that Medupi, the next big power station that is supposed to save us all, will be 4-6 months late. I understand that Kusile is already even later than that.
    Right now we have just enough power. The moment the economy picks up, we will be back in blackout land. Someone, somewhere, needs to tell Eskom that its performance will determine our ability to recover from this present economic downturn. Right now, it isn’t performing, and our recovery is likely to be stalled by their – and Nersa’s – incompetence.



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