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ANC: Statement by the African National Congress in weekly ANC Today newsletter, on Eskom tariff hikes (11/12/2009)

11th December 2009

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The ANC has read with disbelief and surprise the article in the last week edition of Mail and Guardian (Why Maroga stalled price hike, 4 December 2009) alleging that former Eskom CEO, Mr Jacob Maroga, delayed massive electricity tariff hikes until after the 2009 April Elections at the behest of the ANC.

We want to state for the record that such a behest as alleged by Mail and Guardian never took place. No one in the ANC ever requested Maroga to delay the announcement of Eskom proposed tariffs increases until after the elections. There was no reason for the ANC to do so. Firstly, the ANC is a liberation movement which since its inception has championed the aspirations and collective desire of South Africans for a better South Africa and a better life for all. It cannot and should not be reduced to a mere electoral party apparatus whose mission is to win votes above anything else. Secondly, as a ruling party, the ANC is acutely aware of the separation between the party and the state, and thus it does not instruct nor directly engage with government organs.

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The Mail and Guardian reporter never asked the ANC whether it had asked Maroga to delay announcement on the proposal of tariff increases. The only inquiry that was put before the ANC was allegations made by some faceless people within Eskom regarding Maroga's attitude on this matter. The ANC found it very odd that it had to comment, first - on allegations made by some faceless people and also on the matter about somebody else that did not concern the ANC.

It is only for these reasons as stated below that the ANC did not respond to the fishing expedition by the Mail and Guardian reporter.

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The article presupposes that the ANC agreed with the Eskom proposed tariff increases but was only worried about the timing of the announcement of the proposed tariff increases. This is far from the truth. Our approach on energy provisioning has always been that it should not have negative effects of slowing our economic recovery and should also not impact negatively on job creation and economic growth.

It therefore would not make any sense that the ANC would disagree with Eskom proposed tariff increases but still find it expedient to ask Eskom not to pronounce on such increases before the April 2009 Elections. In fact, it is our view that had Eskom made such a pronouncement before elections the ANC stance would have fared better and thus earned more votes in the elections.

We have noted with concern that the successive tariff increase requests through the multi year price determination by Eskom will impact negatively on society, the economy and jobs. We have disagreed with Eskom's proposed tariff increase of 45% over a three year period, we have also recently disagreed with their reworked proposed tariff increase of 35 % over three years.

The ANC has repeatedly called for a comprehensive approach to energy provisioning and sustainability in the country. We have said that this approach should include, among others, how we recapitalise our energy industry without burdening the South African consumer. We have also been saying that such a comprehensive approach should cover other available options for a future energy-funding model, and that it should place greater emphasis on sustainable and renewable technologies and the creation of green jobs.

Such a comprehensive and holistic approach should also appreciate that SA is a developing state with a majority of its citizenry being poor, unemployed and would not afford exorbitant tariff increases that erode their income. We maintain that exploring other energy sources such as green energy should also be examined in addressing the energy challenges we face.

The country's energy mix must contribute to our international obligations to promote a cleaner environment and mitigate the effects of climate change. We have undertaken, jointly with our Alliance partners to conduct a campaign for energy efficiencies and to promote the use of alternative energy sources in society.

The Mail and Guardian should stop peddling untruths about the ANC and misleading its readers. It must use its influence in a worthier cause.

 

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