NUM is still opposed to the unbundling of Eskom

13 August 2023

The National Union of Mineworkers (NUM) is angered by Public Enterprises Minister Pravin Gordhan's decision to go ahead with the unbundling of Eskom. This is after Minister Gordhan approved the sale of Eskom's distribution assets to a new state-owned company.

The agent provocateurs of unbundling, who are the investors, rating agencies and the World Bank are celebrating this bad news against South Africans. Especially the black majority who are still living in energy poverty, joblessness, hunger and without shelter. The unbundling of Eskom is a precursor to the privatization of electricity in South Africa.

The NUM met with Eskom on Thursday where the power utility announced that it was going to transfer the company's distribution assets to a new state-owned company. As NUM, we are shocked that distribution has been sold after seeing the letter circulating on social media. We still hold that unbundling is not good for the country.

The NUM remains opposed to the unbundling of Eskom. Eskom and the Minister of Public Enterprises are unilaterally implementing this decision without proper consultation with key stakeholders such as the unions and the public.

The unbundling of Eskom will not save Eskom from declining revenue, escalating debt, escalating primary energy costs and a realistic plant maintenance program. Scientists have proved that the envisaged solar and wind IPPs have an Energy Capacity factor of less than 40%. This means that electricity from wind and solar is only available 40% of the time, the other 60% of the time we need to supplement with another source of energy. The NUM further noticed the decision to unbundle Eskom is a first step towards the privatization of Eskom. It is what we characterize as green colonization as all these green projects are coming from former colonizers.

The NUM was and is still against the unbundling of Eskom. Pravin Gordhan is selling Eskom without consulting the public.

Issued by Livhuwani Mammburu, NUM National Spokesperson, 13 August 2023