Public sentiment is against Eskom’s proposed tariff hike and the parastatal needs to find other funding options, the Congress of the People (Cope) said on Thursday.
“The government can now surely not ignore the opposition to the proposed hikes in the price of electricity,” Cope said in a statement.
Cope’s comments followed the start of public hearings by the National Energy Regulator of South Africa (Nersa) on Monday on Eskom’s revenue application for the period April 1 2010 to March 31 2013.
According to Eskom, tariffs had to be raised to help fund its R385-billion expansion plan.
However, Cope said the electricity parastatal had to look at other options.
“Part of the problem is that the parastatal is nothing more than a lapdog of the coal industry.
“Its solution of selling off a 30% stake in the Kusile power plant to private investors is simplistic and naive.”
Cope said this move would raise more questions than provide solutions “as we will no doubt have another murky tendering and procurement process well hidden from the view of ordinary South Africans”.
Cope said it supported pubic-private partnerships, but these had to be carried out in a transparent manner.
“Eskom’s track record insofar as transparency goes is nothing but shocking.
“If the government is indeed keen to sell off a stake in power stations, it must first sell to ordinary private South Africans of all races and income groups.
“This would have the benefit of South Africans investing in their own future, creating wealth for all and giving ordinary citizens a say in the running of the energy sector of South Africa.”
The party said another solution to the country’s electricity supply problems was investment in alternative energies.
“This country is blessed with on average more sunlight than any country in the world, and in the west of South Africa seasonal prevailing winds.
“The raw materials are there to build this country into an alternative, green, renewable energy superpower, but the profiteering and narrow interests of the elite with ties to the ruling party take precedence over the plight of 46-million people.”
Cope said it would be at the forefront of objections to “an unreasonable and unjustifiable price hike”.
It would also initiate a campaign for clean, affordable and sustainable energy (Case).
This multiparty initiative would be launched this year.
Cope warned that Nersa, the government, Eskom and the private coal lobby would rubberstamp the increase “at their own peril”.
Cope is due to address Nersa’s public hearings in Durban on Monday. — Sapa