Monday, October 19, 2009

DA@WORK 19 October - DA reveals how huge Eskom hike could have been avoided

Sejamothopo Motau, DA Shadow Minister of Energy last week vocalised the
publics' concern and justifiable outrage at the prospect of a threefold
increase in electricity costs over the next three years.
"It is unacceptable for Eskom and government to expect the costs of their
failures to be covered by ordinary South Africans. In an economic
environment which has placed the public under immense financial pressure,
these increases are simply not affordable," said Motau

Motau then outlined a practical solution to Eskom's problems: to allow for
independent power producers (IPPs) to contribute to electricity
generation.
He added that this solution had been blindingly obvious to government for
some time
Motau described how Eskom alone did not have sufficient capacity to meet
all power requirements and that the IPPs were the only long term option
that would provide sustainable and affordable electricity production
"If IPPs were allowed into South Africa, there would be no threat of load
shedding or a trebling of electricity prices – greater competition in
electricity production and distribution would lead to lower prices for the
consumer," said Motau

Motau then revealed how despite the obvious advantages of allowing private
firms to supply electricity, the ANC government had done everything in its
power to exclude these suppliers.
He added that problems with the awarding of tenders, approval of licenses
as well as a lack of a coordinated energy policy had all conspired to
create the current situation.

"It is ultimately the taxpayer, and the consumer of electricity, who is
paying for this lax attitude towards such a crucial policy area. It is
infuriating to realise that the enormous costs for the public emanating
from the proposed 45% electricity tariff increase could have been avoided
if IPPs were allowed." Motau added

The DA will be posing questions as to why this has not happened already,
and will request a fast track plan for the introduction of IPPs into the
power grid.
Read more http://www.da.org.za/newsroom.htm?action=view-news-item&id=7412

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