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The government’s sudden facilitation of Eskom’s privatization is economically counterproductive: Num – SABC News

The National Union of Mineworkers (Num) says that the government’s sudden assistance in privatizing Eskom is economically counterproductive.

The union’s statement follows President Cyril Ramaphosa’s address to the nation on Monday when he announced several government measures to address the energy crisis in the country.

They include the procurement of additional electricity from independent power producers as well as countries such as Botswana and Zambia that have surplus energy.

Num energy sector coordinator Khangela Baloyi says the government’s decision to privatize Eskom will lead to job losses.

“That’s what we believe. Because when you give private parties to generate electricity, you are taking the market away from Eskom. When you raise the 100 megawatt threshold for companies to be allowed to build their own power station, you are essentially taking away Eskom’s customers. [You are] to take away the ability [for] Eskom to generate revenue … to ensure that Eskom is bankrupt and then you hand it over to private parties,” says Baloyi.

Below is Baloyi’s full interview on SAfm’s First Take programme:

Proposed “Energy Action Plan” to End Blackouts:

Ramaphosa’s announcement on Eskom welcomed

Energy experts have given the thumbs up to Ramaphosa’s announcement that Eskom will now be able to buy additional energy from independent energy producers.

They say that for the first time in 13 years a proper analysis has been done and that there has never been an integrated plan to address the energy issues facing the country.

Experts are optimistic that the government’s integrated approach will look at both short-term and long-term plans to generate more energy capacity.

They say that although the program to buy additional energy from renewable energy is good, it still has a long way to go to ensure its effectiveness and reliability.

Energy Action Plan Response to End SA’s Energy Crisis:

More funding for Eskom

President Ramaphosa says that over the next 12 months, Eskom will receive more funding to carry out critical maintenance.

The move will enable the utility to improve the performance of its power stations by recruiting skilled personnel.

In a special address to the nation on Monday night, the president announced new measures to respond the country’s energy crisis.

Ramaphosa gave Eskom 3 months to add new generating capacity to the grid on an urgent basis.

He says this is achieved by buying energy from companies, households and neighboring countries.

“As part of addressing the megawatt shortfall, Eskom will now also purchase additional power from existing private generators such as mines, paper mills, shopping centers and other private entities that have excess power. Several of our neighboring countries in South Africa, such as Botswana and Zambia, have more electricity capacity than they need.”

The President’s address is below:

The government’s sudden facilitation of Eskom’s privatization is economically counterproductive: Num – SABC News

Source link The government’s sudden facilitation of Eskom’s privatization is economically counterproductive: Num – SABC News

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