POWER MO­NOP­OLY

Finweek English Edition - - IN BRIEF -

Eskom, which re­lies on a R350bn guar­an­tee from gov­ern­ment to op­er­ate, pro­vides the lifeblood of the econ­omy and one should hope op­er­a­tional ef­fi­ciency, fi­nan­cial pru­dence and cor­po­rate gov­er­nance would be be­yond re­proach. Alas. The util­ity and its out­go­ing CEO, Brian Molefe, have been bend­ing over back­wards to benefit the Gup­tas; it is forg­ing ahead with nu­clear power plans even though gov­ern­ment pol­icy is yet to be fi­nalised; and it’s play­ing fast and loose with the fu­ture of the coun­try’s coal mining in­dus­try and in­de­pen­dent power pro­duc­ers. It’s a great game when you can sim­ply shift costs to con­sumers who have lim­ited other op­tions. It is time to break up this cosy mo­nop­oly and fully lib­er­alise the sec­tor.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.