THERE IS ONLY ONE OPTION
I’m writing in response to the article on Eskom’s tariff hikes in Finweek, 1 November. While I don’t want to discuss the tariff hike, the discussion surrounding the tariff hikes and the reasons given is indicative of a disease within all parastatals.
Without a doubt, it comes down to double taxation. When you think about it, issuing shares is the most brilliant way to finance a corporation. As long as Eskom remains a Government corporation, this mode of financing isn’t an option. Eskom is effectively trying to balance its books through tariff hikes. It’s like trying to pull yourself up by your own shoelaces. It’s absolute nonsense to claim that tariff hikes will stimulate economic growth. Lower tariffs encourage corporations to set up shop in a particular region or country.
It’s obvious that the only solution is privatisation. Proper infrastructure, of which electricity supply is one of the most important elements, is a trailblazer for economic growth. Privatise Eskom. I’ll be one of the first shareholders.