IFP PRESS STATEMENT BY: 
Mr EJ Lucas MP: Chairperson of IFP Parliamentary Caucus
Mr HJ Bekker MP: IFP Economic Affairs Spokesperson

23rd May 2008

1. Overview of the Situation

A lack of foresight and planning from the responsible role-players has led to our current situation where Eskom's inability to meet the demand for energy has resulted in many households and businesses being plunged into darkness and thereby causing great suffering and many losses.

Much criticism has been levelled toward government and Eskom officials, and rightly so, as they are primarily to blame for this fiasco. We, in the IFP, have on numerous occasions also offered advice and possible solutions for this difficult situation that we find ourselves in. We do, however, understand that this forum is about the price increases so we will confine our submission to that.

2. The IFP Position

We would prefer any increase to be in line with inflation as anything more than this, in the current economic climate, will only contribute to the vulnerability of the many South Africans who would not be able to afford such a drastic increase. We do, however, understand the need for Eskom to increase its generating capacity and this will require a vast capital injection. With this in mind we would propose that any increases be implemented over a period of time so as to allow consumers time to adjust and not a once off increase as proposed by Eskom. A rate of not more then 10 percent p.a. above inflation should be implemented and this should be phased in over a time period of about five years (that would mean that for 2008/09 the increased rate should not exceed 18 percent).

We think that Eskom should be innovative in their search for solutions to this problem. A massive once off price increase will do more harm than good. They must find solutions that will limit the negative effects to the final consumers.

We, in the IFP, suggest the following:

• Daylight savings. This is a possible solution that should be thoroughly explored as, if implemented correctly; it will ease the electricity demand during peak hours.

• Solar geysers. All government buildings and new developments should be fitted with solar geysers and energy efficient appliances. If need be subsidies should be given to make these items more affordable.