Phuti Mosomane
THE National Union of Mineworkers (NUM) said it has been angered by Public Enterprises Minister Pravin Gordhan’s decision to go ahead with the unbundling of Eskom.
This follows Gordhan’s approval – in a letter – of the sale of Eskom’s distribution assets to a new state-owned company sent to Eskom Board Chairperson Mpho Makwana.
In a statement on Sunday, NUM deputy general secretary Mpho Phakedi said the unbundling of Eskom is a precursor to the privatization of electricity in South Africa.
“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,” Phakedi said, adding that 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.
Phakedi said the union was shocked that the distribution had 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,” he said.
Phakedi said 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.”
He added that the decision to unbundle Eskom is a first step towards the privatisation of Eskom.
“It is what we characterize as green colonization as all these green projects are coming from former colonizers,” he said.
Meanwhile the EFF also vowed to fight what it called a clear move by Gordhan to privatise energy policy and electricity generation.
The EFF said it condemned the continued privatisation and plundering of Eskom assets, disguised as unbundling by Gordhan.
In a statement, the party said the dismantling of Eskom is intended to separate assets from the debt acquired while building the very same assets.
“This allows for industrial-scale looting to continue, while the public is left to settle the debt for assets that will be privatised, unaffordable electricity and continuing blackouts.
“The EFF feels vindicated as we have always maintained that the clandestine manner in which Pravin Gordhan is privatising Eskom and other state-owned companies, with little or no public appraisal, is to conceal corruption,” Spokesperson Sinawo Thambo said.
Tambo said the collapse of Eskom was deliberate, aiming to frustrate the public and fast-track the privatisation of South Africa’s strategic assets in SOEs that should be at the forefront of re-industrialisation.
He added that the government has shown, beyond any doubt, that there is no intention to build additional generation capacity to stabilise electricity availability and end blackouts.
“What is even more shocking is that, despite it being clear that the new Minister of Electricity is merely a spokesperson for the government on the electricity crisis, some still believe that the government intends to address the electricity crisis, even in the absence of practical and believable plans.
“We call on all progressive forces in trade unions, civil society, and business to continue rejecting the privatisation of energy policy and electricity generation. This is driven by the greed and short-sightedness of the incompetent and corrupt governing ANC, which is set to lose power in 2024,” he said.
The EFF said the solution to South Africa’s electricity crisis is the completion of the Kusile and Medupi power stations, ensuring they perform at maximum capacity.
“Privatising energy policy and electricity generation will not only compromise South
Africa’s sovereignty but will also subject future economic policies to the whims of the private sector,” Thambo added.
The party urged the government to do everything possible to explore all other avenues that will bring immediate additional generation capacity, including reopening the Komati Power Station, which was closed by the former Eskom CEO Andre de Ruyter.
The EFF said it remained opposed to the privatisation of South Africa’s strategic public assets and will fight any continuing efforts.
A Sunday newspaper reported that the ANC officials have since “summoned” Gordhan to explain the content of the letter.
Last week, Secretary-General Fikile Mbalula assured the public that Eskom will not be privatised.
But analysts said Gordhan’s approval of the “sale” of the assets has the full support of both President Cyril Ramaphosa and Finance Minister Enoch Godongwana.
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