Eskom: Bold and urgent action needed

ADDRESSING the energy crisis in the country is of critical importance. Erratic power supply is a major obstacle for economic growth and investment in business.

South Africa’s dismal unemployment rate will never be addressed if Eskom continues to load shed and the figures will only get worse. President Cyril Ramaphosa speaking to Parliament last week on the amendment to schedule two of the Electricity Regulation Act spoke frankly about the issues plaguing the country with regards to electricity supply.

“We are in the midst of the worst economic crisis in our country’s recent history, which has seen a dramatic increase in unemployment and hunger and a decline in economic growth.

“Our ability to address the energy crisis swiftly will determine the pace of our economic recovery. Resolving the energy supply shortfall and reducing the risk of load shedding is our single most important objective in reviving economic growth.”

Transparency is crucial in the midst of this crisis but taking action to resolve the mismanagement at Eskom and the corruption that has riddled this stateowned enterprise is critical. And lack of action is what has frustrated business and South Africans at large.

Ramaphosa added that Eskom is working hard to improve the performance of its existing fleet of power stations, reduce its debt burden and complete its restructuring process.

“We know that to confront the energy challenge will require bold and urgent action now. Incremental measures will not be sufficient to meet the scale of this challenge.”

In February, delivering his State of the Nation address, Ramaphosa again raised the importance of stabilising Eskom.

“Eskom is working hard to improve the performance of its existing fleet of power stations, reduce its debt burden and complete its restructuring process.

“While these steps are positive and necessary, they are not enough to address the immediate and significant energy shortfall that threatens our economic recovery.

“We know that to confront the energy challenge will require bold and urgent action now,” Ramaphosa said.

The time for talking about urgent action must come to an end. Decisive steps need to be taken to fix Eskom or the jobs bloodbath in the country will continue.