The Cape Chamber of Commerce and Industry welcomed the NERSA rejection of Eskom’s request for another electricity tariff increase.
Eskom must now do what any other company in this position would do and that is to cut costs, even if it hurts.
Many private sector companies have had to introduce wage freezes and other measures like retrenchment to stay alive. In Eskom’s case this may not be necessary but it will certainly have to cut out some of the frills we have heard so much about, starting with its executive canteens. Set an example. It’s called leadership.
The big problem was that Eskom was paying too much for the coal and diesel. We need more transparency on these deals and Eskom will have to do some hard negotiating to get its procurement costs under control.
The fact that the new power stations are so far behind schedule and over budget as well as the huge maintenance backlog is a clear indication that things have become lax and inefficient. It is wrong to expect your customers to pay for your inefficiency.
Eskom’s performance should be compared with that achieved by the solar and wind farms being developed by the private sector. Without exception they had come on schedule and on budget.
Business and other consumers cannot continue to pour money into what has become the Eskom black hole.
President of the Chamber