COSATU demands immediate halt to electricity restructuring - 17-02-06

 

COSATU demands immediate halt to electricity restructuring

The Congress of South African Trade Unions is concerned that the current process of electricity restructuring will not address the needs of either ordinary consumers or workers. For this reason, we demand that the process be halted until agreement can be reached on a more equitable and effective way forward.

South Africa inherited massive inequalities in access to electricity, which in turn means many municipalities lack the capacity to drive electrification. Thus, the poorest quintile of municipalities, measured in terms of expenditure per person, receives only 1% of revenues from electricity, while the richer quintiles get between a quarter and a third of revenues from this source. For this reason, COSATU has long called for a unified system that would permit redistribution as well as fair tariffs across the country.

In contrast to this approach, current restructuring initiatives will continue to fragment the distribution of electricity at municipal level while encouraging the emergence of more private generation capacity in richer municipalities. This restructuring can only condemn the poorest regions to high-cost and inadequate electricity, while the rich and large-scale, formal industry continue to enjoy relatively stable and low-cost supplies.

In addition, COSATU is concerned that some municipalities, notably Ekurhuleni, have embarked on restructuring without adequately engaging with workers and communities to ensure mutually acceptable outcomes. That approach runs against the spirit of our democracy and our labour laws.

For this reason, COSATU

a. Demands an end to the process of establishing REDs and IPPs in the current form, and

b. Will resist subversion of the existing legal requirements for consultation by legal governments.

We will be taking the issue to Nedlac and will seek meetings with the relevant Ministers. If no progress is made at Nedlac or the ministers, we shall be issuing a Section 77 Notice on the matter.

Patrick Craven (Editor, Shopsteward Journal)

Congress of South African Trade Unions

1-5 Leyds Cnr Biccard Streets

Braamfontein, 2017

P.O.Box 1019

Johannesburg, 2000

South Africa

Tel: +27 11 339-4911/24 or 082 821 7456

Fax: +27 11 339-5080/6940

E-Mail: patrick@cosatu.org.za