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Eskom briefing blacked out
24/04/2008 16:35 - (SA)
Pretoria - A power cut disrupted proceedings at a briefing in Pretoria on Thursday involving possible class action against Eskom.
Lights went off at the briefing hosted by trade union Solidarity shortly before 12.30pm.
The briefing discussed possible class action against Eskom over possible job losses as a result of the power crisis.
The power utility wants to increase power tariffs by 53%.
Earlier in the year, Eskom had asked industry to conserve energy by reducing its power usage.
"The fact is that the electricity crisis is a real threat for workers. There is a high burden on workers, they could lose their jobs as a result of the crisis," said Solidarity's Dirk Hermann.
Herman said that the union's four-member commission of inquiry would meet its legal counsel on Thursday afternoon to discuss the matter.
"We believe we have quite a strong case," said Hermann.
The committee was established at the end of February.
Economic growth
Earlier on Thursday, economist Mike Schussler said the crisis was affecting economic growth.
He said that the perception that South Africa had the cheapest electricity in the world was wrong.
Schussler said that Eskom had sold electricity to neighbouring countries at a cheaper rate. He said the entity had increased electricity rates in excess of the inflation rate for the past 11 years.
Should Eskom be granted the hike, the middle class would be hardest hit, he said.
"On the household side we do not have the cheapest electricity, the residential tariffs in South Africa are 274% more expensive than the tariffs we charge our neighbours," said Schussler.
10 years to solve crisis
Engineer Andrew Kenny described the crisis as "unnecessary and avoidable".
He said it would also take a long time to solve.
"At least 10 years", he said.
The crisis would reduce economic growth, damage the economy and lower international confidence in South Africa, said Kenny.
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