In meetings that were held by the Portfolio Committee on Electricity and Energy, with the Auditor General of South Africa (AGSA) and the Board of Eskom, Wayne Thring, MP, representing the African Christian Democratic Party on the Portfolio Committee, stated that the inability of the Eskom board to stem the losses incurred over the last 5yrs, is treasonous, particularly for those guilty of criminal conduct at Eskom. Not only are the lives of South Africans put at risk, but the livelihoods as well.
The ACDP further positioned that the Eskom inefficiencies have damaged our economy, increased unemployment, poverty and inequality and has been one of the greatest risks to the well-being of families, businesses and the economy in South Africa. These inefficiencies, incompetence, and the inability to address the recommendations of the AG over the years, increases the pain and suffering of South Africans. The 12.7% tariff increase for 2025/26, approved by NERSA, serves only to punish ordinary man in the street, already facing economic hardships created by a multiplicity of factors, many self-inflicted. While the ACDP appreciates the tariff increases of 5.36% for 2026/27 and 6.19% for 2027/28 we note that the three increases equate to an average of 8% per annum, above the 3-6% inflation band.
The ACDP further notes that when looking at the overall audit outcomes on Eskom, the AG noted only one improvement, that is, generation, but 3 areas of deterioration, namely, distribution, finance and oversight and governance. Furthermore, Eskom’s Revenue grew by 14%, but this was largely driven by a 18.65% tariff increase.
The qualified audit outcome, with findings, has caused the AG to conclude that “the cost of primary energy could be much lower-if the losses from criminal conduct, irregular expenditure and fruitless and wasteful spending could be eliminated.” Essentially, the inability of Eskom to implement the recommendations of the AGSA, has resulted in the public having to pick up the tab in tariff increases and bailouts amounting to R500 billion over the recent years.
The ACDP notes the hypocrisy of those calling for “clean, green energy”. China, India, USA and Japan, account for 76% of coal fired power stations. Africa as a continent emits only 4% of the world’s carbon emissions. Exports of our best coal to Europe increased by 720% in 2022. The ACDP cautions that we cannot decommission our coal power stations to please the elites of world, some who afraid that Africa’s growth will displace them as economic powers. We must learn from the Komati power station decommissioning failures and make use of clean coal technology to assist in growing our economy, utilizing the competitive and comparative coal advantage SA has?
The AGSA stated that Eskom continues as a going concern (not bankrupt), only because of government bailouts and guarantees. Essentially, this speaks to an entity teetering on the brink of bankruptcy, and unable to stem electricity losses due to illegal connections, ghost vending and illicit electricity tokens. Of great concern to the ACDP was the Eskom report of 304 arrests and 17 convictions, in an attempt to stop the financial leakages. This equates to a 3% conviction rate and sends a message that crime at Eskom pays, because criminals have a 97% chance of not being convicted.
The challenges faced at Eskom, manifest in the recent urgent load-shedding warning, of up to stage 4 which may be implemented. This, after several breakdowns that have affected the generation fleet. Should this load-shedding be implemented, it will dent the recent optimism gained by over 300 days of uninterrupted electricity supply.
The ACDP Portfolio Committee member, Wayne Thring, called quarterly updates from Eskom in terms of improving their internal audit controls and consequence management actions taken, and the successful implementation of the AG recommendations. The recommendation was supported by the Minister and adopted by the Electricity and Energy Portfolio Committee.
The ACDP will continue to champion the cause of the poor, indigent and ordinary South Africans, and uphold our mandate of holding entities like Eskom to account.
