Leader of the Democratic Alliance (DA), Helen Zille, has recommended several urgent policy interventions that may help Eskom out of its current crisis.<\/p>\n
“The DA believes it is possible to solve South Africa\u2019s electricity crisis. This will require, however, bold leadership, policy certainty and a commitment to reforming the electricity sector,” Zille said.<\/p>\n
“We are…witnessing unprecedented turmoil unfold within Eskom,” the DA lead said, highlighting the suspension of top executives and the announcement of an inquiry into Eskom\u2019s affairs by Board Chairperson Zola Tsotsi.<\/p>\n
In the midst of this political disruption at Eskom and a second credit downgrade to \u201cjunk\u201d status, it is estimated that load-shedding costs the economy R20 billion a month, the DA said.<\/p>\n
South Africans are now bearing the brunt of a preventable crisis caused by poor policy decisions from the ANC in government spanning 17 years, the political party said.<\/p>\n
In 1998, the White Paper on Energy Policy made the case for breaking the Eskom monopoly to coax private sector investment in electricity generation.<\/p>\n
“This was ignored by the ANC despite warnings in the policy that blackouts would follow if reforms were not made,” Zille said.<\/p>\n
The DA lead added that no new electricity generation\u00a0investment took place from 2000, through to 2005, leading to a depletion in the country\u2019s electricity reserve margins.<\/p>\n
“All the while, executives raked in bonuses based on targets to avoid load-shedding, generate profits, and meet BBBEE targets. This goal displacement resulted in massive payouts to executives without them needing to meet crucial electricity generation or maintenance targets,” Zille said.<\/p>\n
“The ANC\u2019s refusal to end the state monopoly on electricity supply was based on maintaining a closed enrichment scheme. Through their front company Chancellor House and its shares in Hitachi, the ANC made hundreds of millions from boiler contracts at Medupi and Kusile,” the Western Cape Premier said.<\/p>\n
The DA recommended several urgent policy interventions:<\/p>\n
In addition to these urgent interventions, the DA position paper proposes several short to long term initiatives aimed at solving the country\u2019s electricity crisis.<\/p>\n
These include:<\/p>\n
SA facing two years of blackouts: minister<\/strong><\/a><\/p>\n