Pretoria - Debate on the privatisation of power utility Eskom is misguided, says Public Enterprises Minister Lynne Brown.
The debate should rather be about the long-term resolution to South Africa’s energy concerns, she said on Tuesday.
This after it was reported that government officials and cabinet ministers are looking into the reconstructing of Eskom. This would include the selling of some of the utility’s power stations to private investors.
The minister reiterated that the long-term resolution of the electricity matter will require among others an agreement on what future energy mix is optimal for the country; a major boost to capacity to undertake successful future build programmes; and decisions on the extent to which future build projects will be undertaken by the private sector.
She said the privatisation of Eskom would be a grave mistake.
In his State of the Nation Address (SONA), in June, President Jacob Zuma said the country needs to respond decisively to its energy constraints in order to create a conducive environment for growth.
“To prepare for the implementation of the energy plan, we need to finalise the legislation that relates to the restructuring of the energy industry,” he said at the time.
Minister Brown said the end-state of the electricity situation does not mean the fragmentation of Eskom. Instead it should be complementary in nature.
“Eskom is critical for government to implement its developmental agenda. And it would be a grave mistake to privatise this critical player in the economy.
“I want to indicate that there is a portfolio of options for the Inter-Ministerial Task Team to consider. To my knowledge Cabinet has not discussed the matter of privatisation and there is no need to unnecessary raise temperatures around this matter,” she explained.
The utility has in the past said that the National Energy Regulator of SA (Nersa's) 2013 third Multi-Year Price Determination decision to allow Eskom an 8% annual tariff increase left Eskom with a R255 billion revenue shortfall over a five year period between 2013 and 2018.
Additionally it is critical that the private sector participate in the country’s energy sector through Independent Power Producers (IPPs). – SAnews.gov.za
