SAFTU: Unbundling of Eskom will lead to steeper tariff hikes

The bill is aimed at paving the way for the unbundling of Eskom.

It provides for the creation of a transmission system operator and an open market platform that allows for competitive electricity trading.

But SAFTU's Trevor Shaku says the bill will ultimately lead to the privatising of Eskom.

"This bill will radically liberalise the electricity generation market and hasten the privatisation of electricity generation.

“In our submission to Parliament opposing the bill, we noted that the bill establishes a framework for the creation of the transmission company and the market for energy generators.

“The creation of the market for electricity generators through the establishment of the Transmission System Market Operator and a Central Purchasing Agency are aimed at furthering the objectives of privatising energy provision in this country.

“They have planned to decommission Eskom’s coal fleet without investing heavily in its renewable capacity. The idea is to replace Eskom’s dominance by having IPPs dominate the production of electricity through renewables," said Shaku.

Shaku believes the bill will lead to steeper increases in electricity tariffs.

"SAFTU reaffirms that our solution to the energy crisis and the future of energy has to be a public pathway solution, opposing the liberalisation of the energy generation market, the unbundling and the dismantling of Eskom. Together with the public provision of energy, Eskom as a vertically integrated public electricity-producing company must be protected from the private sector."

The bill will now be taken to the National Council of Provinces for concurrence before being taken to the president to be signed into law.

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