By Levy Masiteng
The National Union of Mineworkers has come out swinging against Electricity Minister Kgosientsho Ramokgopa’s proposal to privatise parts of Eskom’s infrastructure.
The NUM rejected Ramokgopa’s claim that privatisation would boost generation capacity, calling it a “dangerous and misguided justification”.
Khangela Baloyi, who is the union’s energy sector coordinator, said the NUM viewed any attempt to privatise Eskom infrastructure as a direct attack on the public interest and a betrayal of the South African people.
“We will resist this plan with all available means and challenge those who act as lapdogs of private capital,” he said in a statement.
This rejection follows Ramokgopa announcing a detailed strategy to stabilise the country’s fragile grid and drive economic growth.
“The R440 billion project, spanning a decade, will introduce independent transmission providers to procure and build 14,000 kilometres of power lines and hundreds of transformers,” the minister said in his presentation.
However, Baloyi said the proposed introduction of Independent Transmission Providers to construct 14,000km of transmission lines was a thinly veiled attempt to drain Eskom’s finances.
“This scheme mirrors the detrimental impact of Independent Power Producers (IPPs), which currently force Eskom to purchase exorbitantly priced electricity, regardless of demand.”
He said that Eskom’s financial reports revealed that IPPs contributed 10% of overall capacity, but accounted for 27% of primary energy costs.
IPPs cost 2,367 R/MWh vs 541 R/MWh implying that they were are about 430% expensive., Baloyi said.
“These figures demonstrate the unsustainable financial burden imposed by IPPs, which prioritise profit over the national interest. The NUM will not stand idly by as this neoliberal agenda undermines the well-being of South African citizens. We have a proud history of resisting the 1996 class project and will continue to fight this new wave of privatisation,” he said.
Baloyi said the NUM has requested a meeting with Ramokgopa to discuss the nation’s energy future.
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