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DA: Statement by Sejamothopo Motau, Democratic Alliance Shadow Minister of Energy, on Eskom (15/10/2009)

15th October 2009

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South Africans are justifiably outraged at the prospect of a threefold increase in electricity costs over the next three years. It is unacceptable for Eskom and government to expect the costs of their failures to be covered by ordinary South Africans. In an economic environment which has placed the public under immense financial pressure, these increases are simply not affordable. A common sense solution to Eskom's problems has been staring government in the face for some time now: allow for independent power producers (IPPs) to contribute to electricity generation. This is the only long term option that would lead to sustainable and affordable electricity production - Eskom on its own cannot do this. If IPPs were allowed into South Africa, there would be no threat of load shedding or a trebling of electricity prices - greater competition in electricity production and distribution would lead to lower prices for the consumer. Despite the obvious advantages of allowing private firms to supply electricity, the ANC government has done everything in its power to keep them out: problems with awarding tenders, approving licenses and a lack of a coordinated energy policy have all worked to create this situation. It is ultimately the taxpayer, and the consumer of electricity, who is paying for this lax attitude towards such a crucial policy area. It is infuriating to realise that the enormous costs for the public emanating from the proposed 45% electricity tariff increase - each year for the next three years - could have been avoided if IPPs were allowed. The DA will be posing questions as to why this has not happened already, and on what will be done to fast-track the introduction of IPPs into the power grid.

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