SACP reacts to the unbundling of Eskom

Elias Hubbard
February 12, 2019

The Eskom board announced its plans to launch an "in-depth audit" on Monday night after the power utility implemented stage 4 load shedding.

The private sector has largely welcomed the President's move to turn around the parastatal.

South Africa on Monday introduced its most severe electricity rationing in almost five years, presenting President Cyril Ramaphosa with a major political challenge just months ahead of a May general election.

Eskom said it was uncomfortable about the stability of its generating units after escalating from stage 2 to stage 4 load shedding on Monday. I am joined by the SACP's spokesperson Alex Mashilo to discuss their view on this move.

Cosatu told the City Press that unions would be willing to negotiate with the government on Eskom, but it would not accept any move towards privatisation of the power utility or any job losses.

According to the power utility, this is the best option to save costs and allow for the national grid to operate efficiently in the short-term.

In a interview with state journalists at the end of the African Union summit in Addis Ababa on Monday, Ramaphosa said the sudden severe power cuts had come as a "shock".

He reiterated that a new business model for Eskom will be the only saving grace for the cash-strapped state-owned enterprise.

He added that Eskom is seen as a great risk to the South African economy by ratings agencies and worldwide investors, and had entered a death spiral as a result of mismanagement.

Ramaphosa who last week admitted that Eskom was in crisis, on Monday expressed anger at the intense power outages. "The consequences may be painful but they will be even more devastating if we delay".

Eskom has also pushed for a large increase in electricity tariffs to help improve its dire financial situation.

Other reports by Click Lancashire

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