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ID: Statement by Lance Greyling, Independent Democrats spokesperson, on Eskom (19/10/2009)

19th October 2009

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Lance Greyling, the ID spokesperson on energy, says ‘before we are forced to pay 45% more for electricity each year for the next 3 years, the Government must launch an inquiry into the overall management of Eskom.

‘While the ID accepts the need for an increase in electricity prices, we believe that Eskom's proposal of 45% for each of the next three years is excessive,' Mr Greyling says.

‘Not only will it place a massive burden on already struggling consumers, it will also trigger a domino effect of slowing growth throughout the economy.

‘Given that Eskom has had a particularly poor track record over the last decade in its decision-making and that a number of irregularities have surfaced concerning its management, particularly over its handling of coal supplies, the ID believes that a thorough inquiry must be launched into its operations,' says Greyling.

Greyling says in addition to this, ‘a commitment must be made to consumers that any extra revenue will be well spent and not be used to pay massive bonuses and salary increases to executives, or to simply swell suppliers' profits,' Greyling says.

‘This inquiry should be held before Eskom is allowed to waste any more of our money on dirty coal, or expensive nuclear energy.

‘It is disgraceful that Eskom and the Government continue to behave as if coal and uranium are South Africa's largest energy resources. The indisputable fact of the matter is that the sun is unrivalled as our biggest energy source and it is absurd that Eskom has chosen not to invest any resources into harnessing it,' says Greyling.

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