Loadshedding: Deputy President David Mabuza Says Privatisation of Eskom Is Not an Option

• Deputy President David Mabuza says privatising Eskom will not solve the parastatal's many problems or the energy crisis
• While addressing the National Council of Provinces, Mabuza claimed that government is fully capable of running the state-owned enterprise
• The National Energy Crisis Committee will implement five interventions in the hopes of steering Eskom back in the right direction

CAPE TOWN – Privatising the state-owned power utility Eskom is out of the question for Deputy President David Mabuza. That's what Mabuza told the National Council of Provinces on Thursday, 18 August.

Mabuza, who is the chair of the National Energy Crisis Committee set up by the president, said that the committee will focus on five interventions, which include reducing the severity and regularity of loadshedding by stabilising the energy system, EWN reports.

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What the committee will not consider is privatising the state-owned power utility because Mabuza claims that will not solve any of Eskom’s problems.

Mabuza said:

“We can run this power utility. We have done so in the past and we can’t fail. I don’t think privatising is the answer going forward.”

President Cyril Ramaphosa outlined government’s plans to deal with the protracted energy crisis, which include opening up to private investment as a means to establish a competitive energy market in addition to accelerating the procurement of renewables, gas and battery storage.

TimesLIVE reported that another challenge faced by Eskom is the debt owed by municipalities, which impedes the prospect of financial stability for the parastatal.

Mabuza states that the debt owed to Eskom grew from R44.8 billion to R49.1 billion between March and July 2022. The deputy president said that the crisis committee will also focus on clearing mounting debt.

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Mabuza added:

“The committee’s main task is to improve revenue collection and the strengthening of partnerships with stakeholders to improve payment levels of indebted municipalities.”

Mabuza implored South African citizens to pay for their electricity, and to ensure that this happens, he said the SA Local Government Association has instructed municipalities to start a strict debt collection and restructuring process.

South Africans weigh in

South Africans do not agree with the deputy president, many people are saying privatisation is the only way to save Eskom

@cejay51 asked:

“So what, oh clever one, would you suggest we do to ensure a constant supply of electricity? Your organisation is responsible for placing us way beyond the 8 ball!”

@PaulRaad12 exlaimed:

“Privatising Eskom is the ONLY option.“

@SACountryweLOVE commented:

“…because then stealing and corruption will be more difficult.”

@mafisa_mmuso said:

“If privatising Telkom became a viable option for government, surely privatising SOEs like Eskom and SAA surely is.”

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@jar123_ pointed out:

“Not privatising is downfall in SA. Govt. parastatals Post Office, SABC, Eskom, Telkom, Prasa to mention a few?”

Pravin Gordhan says there is light at the end of the tunnel, Eskom will sort itself out in 2 years

In related news, Briefly News reported that Public Enterprises Minister Pravin Gordhan has given South Africans hope that there will be literal light at the end of the tunnel.

He said that the issues Eskom is currently dealing with are not due to the current leadership of the parastatal.

Gordhan said that in about two years, loadshedding will be a thing of the past as the ANC focuses on increasing power generation and investing in renewable power solutions, according to eNCA.

Source: Briefly News