NEDLAC statement on electricity 04-04-08

 

NEDLAC PRESS STATEMENT

The Management Committee of Nedlac considered the current electricity crisis in the country at its meeting held on 4 April 2008. Concerns were expressed by the representatives of labour, business and the community constituencies in the manner in which the crisis was being managed to date.

These include:

The lack of urgency in following up the decisions of the Joint Presidential Working Group meeting held on 29 February 2008
The poor communication strategy that leads to uncoordinated announcements
Concerns about Eskom's management of the crisis

These concerns will now be communicated to government by the Executive Director of Nedlac.

Constituencies reaffirmed their commitment to working together to address the current crisis by taking a number of urgent steps.

These steps include a proposal for the establishment of a national stakeholder council that will provide a co-ordination platform to improve coherence amongst all stakeholders and provide opportunity for high level engagement.

Such a proposed Council would be working closely with Nedlac on major policy issues. Constituencies believe that this high level engagement would improve mutual understanding of the challenges facing the country and at the same time allow opportunity for a range of solutions to be explored.

In addition work towards a stakeholder accord on management of the electricity crisis was initiated.

A Task Team has been established to develop a consolidated stakeholder response to proposed interventions to address the electricity crisis. The Eskom application for a significant price increase has been accorded the highest priority for attention.

While accepting that there is a need for a review to the current approach to electricity tariffs, Constituencies agreed that the process should be delayed for a limited period to allow for urgent consultation on the need for, extent and structure of, and possible alternatives to tariff adjustments, the socio-economic impact of different options and the phasing of any necessary tariff increases.

Any rushed decision in this regard would have serious negative socio- economic consequences. Nedlac has therefore initiated a process that will analyse the potential socio economic impacts of a the proposed price increase.

Nedlac believes that it is imperative that sufficient time is allowed for stakeholders to prepare a considered response to the proposed increase taking into account a range of issues. Constituencies have committed themselves to an urgent process but believe that the fast tracked time frame recently announced by NERSA will not allow the necessary space for a proper consideration of all the issues.

Nedlac is therefore urging that stakeholders are afforded the necessary time for response and that implementation of any proposal will be taken in consultation with stakeholders.

It has been agreed that the Nedlac constituencies would hold a technical workshop to discuss the technical issues that underpin tariff determinations by NERSA.

The basic message of Nedlac is that urgent and coordinated steps are imperative if the electricity crisis is to do minimum damage to the society and economy.