NUMSA and Allies Call for Dismantling the Mineral Energy Complex in South Africa
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- Published on Friday, 12 February 2016 07:30
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A Socialist Project e-bulletin .... No. 1220 .... February 12, 2016
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NUMSA and Allies Call for Dismantling
the ‘Mineral Energy Complex’ in South Africa
Electricity Crisis Conference Declaration
We, as representatives of trade unions that organize in the energy sector and delegates from communities that are struggling around outages, loadshedding, high electricity prices and poor quality of energy services, met for four days (June 2nd to 5th, 2015) in the midst of what we consider as a far-reaching electricity crisis in our country. As we met, on the table of the National Energy Regulator of South Africa (Nersa) is an application by South Africa's electricity utility -- Eskom -- for a 25.3% increase in the price of electricity for the year 2015/16 to 2017/18. As we met, Nersa had agreed to grant municipalities an above-inflation increase... of 12.2% from July 1st, 2015 and that nine municipalities were applying for average increases above the Nersa increase guideline of 12.2%. We also gathered when delegates at this conference from two municipalities were unsure whether they will reach their homes at the end of our deliberations still with some power, as Eskom threatened to plunge into darkness their defaulting municipalities today.
The electricity crises that face us worsen with each day that passes. The crisis is multipronged. It is a supply crisis and chronic load-shedding. What we see is a financial meltdown of Eskom; massive cost and time overruns in the build programme of new power plants such as Medupi and Kusile; and a worsening governance practices within Eskom as executives come and go, leaving with millions of rands as golden handshakes. We have also seen the downgrading of Eskom within capital markets and a ballooning debt for the utility as municipalities fail to pay their bills to Eskom.
As delegates to this Electricity Crisis Conference, we are enthused that our people are refusing to shoulder the implications and consequences of the crises. Throughout the four days, we heard of gallant battles against unaffordable electricity increases and imposition of prepaid meters that are being waged in different communities who refuse to have the burden of the electricity crises shifted onto them. At the forefront of these battles are women who unfortunately still bear the brunt of reproductive activities in our society. Our people realise that the electricity crises directly affects their children's ability to learn and to be taught as schools are cut off. Our people realise that as most of their staple diets are electricity intensive, tariff hikes increase food hunger in South Africa. They know that an increase in the price of electricity will lead to retrenchments and short-time for workers.
