MEDIA STATEMENT BY THE
INKATHA FREEDOM PARTY

 
ESKOM Needs to Re-Evaluate Expansion Plans
 


Inkatha Freedom Party Statement By:
MR ERIC LUCAS MP
IFP SPOKESPERSON FOR MINERALS & ENERGY  
  

16 January 2008

There is no doubt that there is a desperate and urgent need for Eskom to expand, due to South Africa's booming economy which has seen the demand for electricity grow faster than government had anticipated.

Coupled with the growth in the demand for electricity within our own borders, we still provide our neighbouring countries such as Botswana, Mozambique, Zimbabwe, Namibia and Lesotho with electricity.  

Providing neighbouring countries with electricity, when we have power shortages ourselves, places massive strain on our electricity grid and the IFP is not sure what benefits, if any, this practise holds for South Africa. 

We are also extremely concerned about Eskom's plans for expansion and how they are planning to approach it. 

Firstly, the IFP is concerned with the fact that Eskom is to ask government for money to help fund its capital expansion programme and avoid a ratings downgrade, which would translate into higher costs for consumers.

Secondly, we know that France and the UK have been invited to tender for the building of new PBMR plants. But the IFP can't help but wonder: where will Eskom get the money from if an international tender is accepted?

The normal run of the mill for any business would be to check the business climate, formulate a business plan and then to build and expand its service.

But now Eskom expects consumers to pay first, without receiving any benefits. 

And these are the fundamental concerns of all South Africans.

Eskom, who has been plagued by numerous problems over the past couple of years, have consistently paid out performance bonuses to their management.

Practises like these, raise questions with the public.

Furthermore, consumers are now expected to foot the bill for Eskom's R150-billion infrastructure expansion programme by paying 14% more for their electricity. South African consumers are already financially over-burdened with high fuel prices, the high inflation rate and higher food prices. Then, on top of all of this, to expect South Africans to pay so much more for their electricity is unfair.

Therefore, the IFP would like to suggest that Eskom have a re-look at its current expansion plan, and maybe consider looking at other models to attract outside investment into the company. 

Eskom should also actively encourage solar water heating panels for heating water.

Another partial solution for our current electricity crisis would be to look at the daylight savings system. Currently, standard time for all of South Africa is GMT + 2, even though the country is wide enough for two time zones. By splitting the country into two time zones, possibly one hour apart, we would have two different peak periods in the morning and two different peak periods in the evening. This could help to significantly spread the country's electricity demand and could lead to less load-shedding and hopefully fewer blackouts. 

Lastly: Eskom and municipalities should closely monitor government buildings if they are serious about saving electricity. Government buildings are often the biggest electricity wasters, leaving their lights and other equipment switched on 24/7.   

For more information: 
Mr Eric Lucas MP: 082 557 2481 
Liezl van der Merwe: 083 611 7470