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'Privatise Eskom'
27/01/2008 14:34 - (SA)
Johannesburg - In the current electricity crisis the privatisation of all Eskom's components should be considered very seriously, Jan Bosman, Managing Director of the Afrikanerbond said on Sunday.
"In 1993 the government of the Philippines was confronted with a similar electricity crisis. The power shortage was ended when government entered into supply contracts with private electricity supply companies through the government controlled National Power Corporation (Napocor)," Bosman said.
The end result was a surplus supply for the Philippines, he added.
The fact that Eskom reports to two government departments was also a contributing factor to "the dragging of feet."
"Apart from Eskom;s responsibility to the Department of Public Enterprises, the electricity policy is determined by the Department of Minerals and Energy. This delays any urgent decision making and long-term planning," Bosman said.
Privatisation would bring in additional income for the treasury and it would also reduce the financial burden on government to manage entities which were often less competitive than their rivals in the private sector, Bosman said.
Privatisation would also send a very positive signal to international investors that South Africa was committed to market driven development.
Bosman said that privatisation could also lead to reduced prices and better services for the consumer.
"Privatisation can contribute to economic growth and the creation of work - much more than are currently being created by public enterprises,"
Bosman said that if SA was sincere about a higher growth rate and also a successful 2010 soccer World Cup then the electricity crisis could not be allowed to continue indefinitely. "The privatisation of the complete electricity industry, also to reactivate the mothballed power stations can be the determining factor in addressing the crisis and to restore investment confidence in South Africa," he said.
Earlier, The Sunday Times listed those to blame for plunging South Africa into darkness as President Thabo Mbeki, Deputy President Phumzile Mlambo-Ngcuka, Public Enterprises Minister Alec Erwin and former Eskom chief executive Thulani Gcabashe and his successor, Jacob Maroga.
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