The Congress of South African Trade Unions (COSATU) urges immediate action by government to reduce the increasingly unaffordable price of electricity to stop a jobs bloodbath. This is not a matter that workers or the economy can afford for government to continue to philosophise about.
Since the advent of loadshedding in 2006, electricity prices have increased by more than 450% with endless promises of short-term pain. The consequences have been that electricity tariffs are squeezing working-class families, taking monies needed to buy food and other essential goods, as well as starving the economy of badly needed stimulus. It is not a coincide that more than 70% of households are drowning in debt.
These relentless electricity price hikes have led to closure of numerous smelters, with the latest alarms being sounded by Glencore that will see thousands of workers lose their jobs, more lost downstream and ghost towns created. Industry and labour have raised the alarm bells on this crisis with government over many years. It is time that government acted decisively to avoid further job losses.
Key interventions need to include ensuring that:
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All consumers are moved to prepaid electricity bills, whilst ensuring that indigent households receive their free electricity allocation.
Eskom and municipalities disconnect illegal connections and are provided the necessary protection by law enforcement when doing so.
Revamping Treasury’s debt relief package for municipalities owing Eskom.
Treasury’s Chief Procurement Officer provide support to Eskom and municipalities to reduce wasteful expenditure.
The South African Police Service, Hawks and the judiciary ramp up support to Eskom and municipalities to tackle crime and corruption, including cable theft and vandalism.
Investment in 14 000 kilometres of transmission lines are expedited to unlock renewable energy in the three Cape Provinces.
Eskom is provided the support, including financing, to enter the renewable energy space to help reduce its own generation costs.
Whilst these key interventions will provide the medium- and long-term solutions needed to place electricity on an affordable trajectory, an immediate intervention is needed from government and Eskom to enable industrial sectors to cope and avoid further smelter and other company closures, including through reduced tariffs. What the economy cannot afford to continue is to allow the massive financial leakages undermining Eskom’s ability to provide affordable electricity to continue, including the widespread culture of non-payment for electricity consumed.
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The Federation has continuously raised this matter at Nedlac and will soon be tabling a Section 77 strike certificate there and seeking urgent engagements with Eskom as well as the Presidency and the Ministries for Electricity and Energy, Finance, Cooperative Governance, Mineral and Petroleum Resources, as well as Trade, Industry and Competition to find tangible solutions to this crisis.
