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DA calls for Eskom probe
19/03/2008 15:25 - (SA)
Cape Town - The Democratic Alliance on Wednesday renewed its call for an independent inquiry into Eskom, in the wake of news that the utility is seeking a massive tariff hike.
"The DA shares the public's outrage over revelations that Eskom has requested a 60% hike in electricity tariffs," the party's public enterprises spokesperson Manie van Dyk said in a statement.
"It is seven times higher than inflation and will put upward pressure on both inflation and interest rates."
He said the probe should look at Eskom's management of "the real crisis", its current production capacity, and future supply.
He had made a similar call in the National Assembly last month, he said.
Van Dyk said it was "abundantly clear" that tariff increases were not a permanent solution to the crisis and were not enough to fund Eskom's capital spending programme.
Government should revoke Eskom's designation as the sole purchaser of electricity to make possible greater involvement by independent power producers.
Independent Democrats energy spokesperson Lance Greyling said the proposed tariff hike was outrageous and would have a crippling effect on the economy, jobs and the poor.
"It is completely unreasonable to expect South Africans to shoulder such a huge electricity price increase," he said.
"Also, to show respect for the consumer they have wronged, Eskom should place a moratorium on all bonuses to management."
He said government should increase the amount of free basic electricity, which he said was currently insufficient to meet the needs of poor households.
- SAPA
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