The recent passage of the Electricity Amendment Regulation Bill by the National Assembly has sparked controversy and debate in South Africa. The bill aims to pave the way for the unbundling of Eskom, the state-owned power utility.
However, the South African Federation of Trade Unions (SAFTU) has strongly rejected this bill, arguing that it will lead to the privatization of Eskom and result in steeper increases in electricity tariffs.
SAFTU, represented by Trevor Shaku, believes that the bill will radically liberalize the electricity generation market and hasten the privatization of electricity generation.
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In their submission to Parliament opposing the bill, SAFTU highlighted the establishment of a transmission system operator and an open market platform for competitive electricity trading.
They argue that these measures are aimed at furthering the objectives of privatizing energy provision in the country. Shaku also raises concerns about the lack of investment in renewable energy capacity.
He claims that the plan to decommission Eskom’s coal fleet without significant investment in renewables is an attempt to replace Eskom’s dominance with independent power producers (IPPs) dominating electricity production through renewables.
SAFTU believes that this approach will ultimately lead to steeper increases in electricity tariffs, placing a heavier burden on consumers.
In opposition to the bill, SAFTU reaffirms their belief in a public pathway solution to the energy crisis and the future of energy in South Africa. They argue against the liberalization of the energy generation market and the unbundling and dismantling of Eskom.
SAFTU advocates for the protection of Eskom as a vertically integrated public electricity-producing company, emphasizing the importance of public provision of energy.
According to SAFTU, the privatization of Eskom would not only result in higher electricity tariffs but also pose a threat to job security and the welfare of workers in the energy sector.
They argue that a public pathway solution is necessary to ensure affordable and reliable energy for all South Africans, while also protecting the interests of workers.
The Electricity Amendment Regulation Bill will now be taken to the National Council of Provinces for concurrence before being presented to the President for signing into law.
The passage of this bill has the potential to reshape the energy landscape in South Africa, with far-reaching implications for electricity tariffs and the future of Eskom.
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