DA SHADOW finance minister Tim Harris has called on the government to privatise power utility Eskom.

In advocating a position that will most certainly be opposed by labour, Harris argued that Eskom's dominance in the electricity industry was responsible for continuous tariff increases that have hit millions of consumers hard.

The cost of electricity rose by 16% on April 1. This was another in a long line of increments implemented by the utility, including 24.8% and 25.8% electricity tariff hikes in 2010 and 2011 respectively.

The shadow minister said yesterday the increases amounted to an effective 82.3% hike in the price of electricity over the past three years.

Harris also proposed that, as a means of offsetting future crippling increases, parts of Eskom's power-generation capabilities be sold off to allow private power generators to enter the market.

He said introducing new players into the industry would go a long way in offering competitive prices to ratepayers.

The sector's regulator, the National Energy Regulator of South Africa, also received a lot of criticism.

Harris accused the entity of casting a financial burden on South Africans by passing Eskom's multi-billion rand projects on to consumers.

The power utility is currently in the midst of a R300-billion building programme which includes the building of Medupi and Kusile coal power stations.

Yesterday's media briefing, which was also attended by the party's national spokesman Mmusi Maimane, raised concerns about the rising cost of living.

The party noted significant increases in the price of petrol, electricity and monthly train tickets between December last year and this month.

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Thu May 23 19:08:49 SAST 2013 ::

Apr 19, 2012

Danielrjvv1

Interesting how one political party wants to nationalize everything and the other privatize it? Polar opposites as usual, I understand why, but will anyone really want to invest in failing company? Isn't the maintenance cost too much for any private firm to be able to manage? Why not privatize the industry? Get a private firm to rival Eskom rather than privatize Eskom itself?
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Apr 19, 2012

MommaC

There is no need to privatise Eishkom, just give an alternative which will force them to be more cost effective to compete. Look how Telkom responded to the advent of competition. Suddenly they even answered their phones and were able to slash the call prices.
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Apr 19, 2012

candilious

@Daniel-Morning I agree with you inorder for a Private company to be incharge but i dont see thta happening
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Apr 19, 2012

mambaaai

Competition would be good for pricing, SA has many physical features that could produce renewable energy etc besides Escom appear to have not been proactive enough in the past, given the electrical outages. Opening the market up would create additional business and job opportunities which are needed
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Apr 19, 2012

Sugaar

next months when e-tolling start working, you will only remain with some few items.
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Apr 19, 2012

Danielrjvv1

candilious, MommaC, mambaaai

Wasn't there that French comp that wanted to supply us with electrical infrastructure, but the government said no? I can remember something like that a few years ago?
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Apr 19, 2012

MorenaWaPolelo

The Shadow ministers calcs are incorrect these people say things and hide behind the parly walls, this monopoly is working well for the Government. Power is big business and 20 years from now it will be a trillion rand business ther is no way that the government will ignore this fact. Also privatising will force us to be taxed for the short fall if there is competition also not forgeting the retrechments associated with privatisation. The government must keep the ESKOM monopoly going, DA can privatise anything they want, change the streets and city names when they are in power for now the status quo remains.
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Apr 19, 2012

truthhurt

Sugaar
next months when e-tolling start working, you will only remain with some few items.
==============================================================
To hell they are, e-tolling is the new slavery, and will never see the light of day, not in SA.
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Apr 19, 2012

MommaC

Danielrjvv1

If memory serves, it was one of the mines who wanted to open a power plant for use in the mine and for distribution to the surrounding areas. Eishkom got it stopped as the ONLY entity that is allowed to supply electricity (by law) is Eishkom. According to the strictest reading of the law, if you use a generator without prior approval from Eishkom, you are breaking the law. It is that stringent.

As Eiskom is the only manufacturer that actively discourages people from buying their product, it is mindboggling to comprehend why they won't allow us to b*y someone else's product
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Apr 19, 2012

Guru-Meditation

We are planning things like nationalism, the DA on the other hand is taking us backwards with privatisation. It is clear to us now that DA is representing the minority interest, not the interest of the majority of SA people.

The poverty of SA people has taken us to a stage where we should start nationalising things, not privatising them.
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