Minister Gordhan’s Eskom plan very thin on detail

29 October 2019

The Democratic Alliance (DA) is taken aback by the underwhelming plan on Eskom presented by the Minister of Public Enterprises, Pravin Gordhan. While referencing the urgent need to unbundle Eskom, the paper failed to provide a detailed outline of how this will be achieved and the related costs estimates involved.

Even as the Minister made reference to the creation of a separate transmission unit by 31 March 2020, he was silent on the role that Independent Power Producers (IPPs) were to play in this regard.

This uncertainty and lack of clarity in energy policy is what has led South Africa to the energy crisis we currently face.

The DA’s Cheaper Electricity Bill, which has been tabled before Parliament, is very clear on the need to break Eskom into two separate entities - a generation and transmission/distribution entity. At the core of the DA’s plan is the creation of a privatised generation entity that would break Eskom’s monopoly on the production of energy enabling (IPPs) to compete on an equal footing in the generation sector.

In his presentation, Minister Gordhan kept saying, ‘the only way to fix Eskom is to work together’, however, his record in this regard is disappointing. The DA’s has repealtedly called for audience with him on this urgent issue of national importance but our efforts have been met with a stonewall of silence.

The time has come for Minister Gordhan to put his partisanship aside and reach across the aisle to consider the input of the DA. We are all on the same team working for the same goal for an energy secure South Africa.

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 29 October 2019