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ID: Statement by Lance Greyling, Independent Democrats spokesperson, on Eskom, the Department of Energy, and Nersa (25/10/2009)

25th October 2009

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Lance Greyling, the ID spokesperson on energy says the ‘unholy alliance that has developed between Eskom, the National Energy Regulator and the Department of Energy in terms of deciding South Africa's energy future is extremely worrying.

‘In too many instances regarding energy planning in South Africa, where Eskom is able to exert undue influence on these bodies, we can clearly see the tail wagging the dog,' Mr Greyling says.

‘The most recent example is the drafting of the National Integrated Resource Plan by the Department of Energy.'

The Energy Department submits the Plan, which informs NERSA's decision-making process over the tariff increases Eskom has requested, to the energy regulator.

‘This plan is of paramount importance because it is the blueprint of our country's energy direction over the next two decades. The Department of Energy, however, has relied almost solely on the inputs of Eskom in formulating many of its assumptions,' says Greyling.

‘It stands to reason that the information given by Eskom to the department would simply support their argument for huge tariff increases to fund their own build programme with very little given over to independent power producers.

‘It is for this reason that renewable energy and energy efficiency have once again been marginalized at the expense of dirty coal and expensive nuclear power,' Greyling says.

‘The fact of the matter is that Eskom has never been committed to either renewable energy, or energy efficiency and the Department should have consulted far more widely with other stakeholders in drafting this plan.'

According to the regulations drafted by the Department concerning the National Integrated Resource Plan, Parliament's role has also been restricted to simply that of noting the Plan, according to Greyling.

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‘The ID believes that the National Integrated Resource Plan needs to be thoroughly scrutinised and intensely debated as it will determine the future direction of our energy policy.

‘The ID firmly maintains that our decisions over our future energy path need to be made in thorough consultation with all South Africans and not simply left to the small cabal of technocrats who got us into this mess in the first place,' Greyling says.

 

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