Break up dinosaur Eskom

Eskom is a dinosaur that needs to be broken up and dismantled. It is in financial crisis, with billions in losses, bloated staff, rampant interest payments and ballooning debt that could hit R600bn.

The DA’s Ismo bill, or “cheaper energy bill”, aims to break up Eskom into a transmission- and gridowning entity, known as the independent system management operator (Ismo), and a generating entity, Eskom. Eskom will then compete with independent power producers on price and reliability for supply to the grid. Eskom can be privatised in part or in full over time.

Metros with a proven history of good financial governance and electricity management will be allowed to trade with electricity generators directly, buying electricity from the source.

The governance of the Ismo will be a blend of private and public representation, which will provide further credibility and reduce potential state corruption. The bill will thus allow competition among power producers and break the monopolistic power of Eskom on energy.

Energy prices will fall through cheaper and cleaner forms of energy, such as wind and solar, which will be able to compete on an equal footing with Eskom. We cannot be held ransom by an archaic Eskom looking to the state to bail it out with further guarantees, and for South Africans to fork out more money for electricity.

Eskom is looking for a 15% increase in electricity prices for 2019, well above inflation. This is unsustainable given the recent VAT, tax and petrol price hikes. The DA looks forward to all parties supporting this cheaper energy bill, which will rejuvenate our energy landscape and bring about competitive electricity prices.

Natasha Mazzone, MP DA shadow public enterprises minister