/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The National Union of Metalworkers of South Africa (NUMSA) appeared before the North Gauteng High court in Pretoria on Tuesday to prevent the Energy minister and Eskom from concluding agreements with Independent Power Producers (IPP’s). The Energy minister wants to rush the process of signing the IPP contracts without considering the impact that this decision would have on workers and their families. The purpose of the court application is twofold:

1.    NUMSA together with Transform RSA want the High Court to interdict the Energy minister and Eskom from concluding agreements with Independent Power Producers (IPP’s) until the court hears an application by the Coal Transporters Forum (CTF) which is already before court on this issue.

2.    NUMSA and Transform RSA wish to join the main application by the Coal Transporters Forum, which is currently before the court.

THE IPP’S WILL RESULT IN THOUSANDS OF JOBS BEING LOST!

NUMSA wants to place it on record that we do not oppose Renewable Energy or an energy mix. We were one of the first trade unions in the country in 2012 to call for a transition from fossil fuels to renewable energy because of the harmful effects of climate change on our members and their families. However, we demand a renewable energy (RE) sector which is controlled and owned by workers and the community. Furthermore, the conclusion of the IPP agreement will automatically result in the closure of five Eskom power stations in Mpumalanga, which will result in at least 30 thousand jobs being lost.

NUMSA demands a Just Transition. This means that if there is to be a transition from fossil fuels to renewables it cannot be at the expense of jobs and the sustainable development of the community. We cannot solve the problem of climate change by creating a new problem and exacerbating poverty and unemployment. We have an unemployment rate of 36 per cent, and more than half the population lives in poverty. The renewable energy sector must help provide solutions to this crisis, instead of making it worse.

The conclusion of the IPP agreements would plunge the province of Mpumalanga into a crisis because the majority of the industries there depend on the existence of coal fired power stations in the area. The government cannot be allowed to conclude these agreements without first dealing decisively with this issue. There are no plans, and no initiatives by the state to re-skill or re-establish new businesses to support the community once the IPP’s are rolled out. Furthermore, there are no enforceable guarantees to ensure long term quality jobs. The state has only promised short term, low paying jobs during the construction phase of the project, which we reject.

IPP’S WILL INCREASE THE COST OF ELECTRICITY

Eskom has admitted in open court that the IPP project will cost them more and they can’t afford to procure electricity from the IPP’s. Currently Eskom can produce electricity for 32 cents per kilowatt hour, but the cost of procuring from IPP’s is at a staggering R2,14 per kilowatt hour!  This project will cost the fiscus more than R1.1 Trillion over the next 20 years. The state cannot justify an outrageous expense. We rejected nuclear on the grounds that it was unaffordable. The IPP project will have a devastating impact on our economy and is likely to result in high electricity tariffs and that is why we reject it.

THE IPP DEAL IS A WAY TO LOOT ESKOM

Eskom has confirmed that it has a ‘surplus’ of electricity and excess capacity and this is likely to last for some time. It boggles the mind therefore as to why the state wants to rush to conclude these IPP deals when we do not have a short supply of electricity. This is clearly not being done in the interests of the working class majority. These deals are being concluded for the benefit of crony capitalists with ties to the leadership of the governing ANC. They want to loot the state owned enterprise just like the Gupta’s were accused of doing.

We hope the High Court ill grant us the relief we seek. Judge Dawie Fourie will hand down a decision on the matter on Thursday afternoon. We will do all we can to continue to fight on behalf of our members and their families as they will be the ones who will suffer the most if these contracts are concluded.

Aluta continua!

The struggle continues!

Issued by NUMSA