SACP against Eskom privatisation

The South African Community Party (SACP) says it would be a major strategic error to privatise Eskom in any way.

In a statement, after the conclusion of the party’s three-day central committee meeting in Johannesburg on Sunday, the SACP said separating power generation from transmission would compromise the ability to effectively manage the network.

Part of its statement reads: “Apart from any ideological considerations, selling-off parts of Eskom at this time when the global market value of energy producers is at rock-bottom and when, in the case of Eskom, any private buyer would benefit both from a low price and the future fruits of the current massive Eskom infrastructure spend.”

Privatisation would also result in significant increases in the cost of electricity for households and industry. The SACP said Public Enterprises Minister, Lynne Brown, and acting CEO Brian Molefe accepted invitations to interact with the central committee in regards to Eskom.

The party says the current financial challenges facing Eskom are not impossible to overcome. The SACP supports an approach where Eskom takes on more bond debt, rather than selling off equity, because doing so would compromise the strategic management of Eskom in the public interest. Click Here for more news

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