Business Day

Eskom needs acumen

-

SIR — Brian Kantor’s proposed solution to save Eskom is appealing but quite naive (Airports Company SA could put Eskom on the right path, September 22). He ignores the three dimensions that will influence any government decision to change the present dispensati­on — the politics of free electricit­y supply, which underpins the African National Congress-led government; transforma­tion requiremen­ts that will negate any labour efficiency required to operate a post-Eskom public utility; and the economics of monopoly dominance if we get a foreign player to underwrite the present wreck.

The examples of Telkom and the Airports Company SA demonstrat­e the very problem Prof Kantor is yearning to mitigate: the prohibitiv­e costs imposed by these arrangemen­ts. We have one of the highest communicat­ion costs and the highest airport taxes. Imagine what a new private utility would levy?

What is required of Eskom is a return to hard-core profession­alism. The government would have to create a special legal category for strategic industries that will be exempt from all the legislatio­n that underpins the transforma­tion prerogativ­e — black economic empowermen­t and employment equity.

Prof Kantor, like the rest of us, needs to resign himself to the fact that we have a government that is too incompeten­t and too weak to impose any solution that will bring Eskom back to the days when it generated the cheapest electricit­y in the world and gave the country strategic competitiv­eness. John Catsicas Johannesbu­rg

Newspapers in English

Newspapers from South Africa