The National Union of Metalworkers of South Africa condemns the National Energy Regulator of South Africa (NERSA) for granting Eskom a 5.2% tariff increase. Last month NUMSA and the United Front participated in public consultations on Eskom’s request for a 19.9% price increase in the 2018/2019 financial year, where we rejected the request. Below are five reasons why NUMSA rejects any increase in the cost of electricity:
- NUMSA is dismayed by NERSA’s decision to grant Eskom an above inflation 5.2% price increase. By doing so the energy regulator is demonstrating it does not act in the interests of the working class majority and the public in general. Most companies big and small simply cannot afford it. The tariff hike is likely to result in plant closures which will lead to more job losses and stifle growth in the economy.
- For the working class, access to electricity, like water, is a human right and therefore we demand free electricity for the working class and the poor, and affordable electricity for industry. The working class majority and the poor cannot afford to pay and the state should not commodify this basic human necessity.
- Eskom is poorly led and its senior management team is drowning in scandals. The management team has shown that it cannot be trusted to clean up the power utility. The outcome of the disciplinary hearing of Matshela Koko, the suspended acting CEO shows proves this. Koko was disciplined for failing to declare a conflict of interest regarding his step-daughters ownership of shares in a company which was awarded more than a billion rand in contracts by an Eskom division which he led. He was cleared of all charges and the chairperson has reinstated him. This is despite the fact that the hearings have been discredited because of allegations of board interference, and threats of intimidation.
- Furthermore in a period of just two years Eskom has had three CEO’s. It’s CFO has been suspended under a cloud of corruption and mismanagement. Clearly the participation of private companies such as KPMG, Mackenzie and Trillian in the looting of Eskom resources, and the undue influence of the Gupta family in allegations of state capture, is a clear indication that paying more for electricity means endorsing this blatant theft of our country’s resources.
- NERSA has demonstrated that it is completely oblivious to the suffering of the working class majority. StatsSA has confirmed that more than half the population lives in abject poverty; more than 36% of the working population is unemployed and the gap between the rich and poor is ever widening. To make matters worse the economy is in junk status and growth prospects are very low. The majority of the working class cannot afford to pay for electricity. Therefore an above inflation increase of 5.2% will compound all these problems and increase the chances of a violent explosion in the country.
NUMSA together with the United Front will be holding regular demonstrations and pickets across the country next year to highlight these issues. What we need is free, safe and accessible energy for the working class and the poor. We reject any price increase because it will put electricity out of economic reach of the majority of people in the country.
The struggle continues!
Issued by Irvin Jim
NUMSA General Secretary
For more information contact:
NUMSA National spokesperson (Acting)