By Odwa Bafana Mkentane
The South African Federation of Trade Unions (SAFTU) has criticised President Cyril Ramaphosa’s defence of Eskom’s unbundling, rejecting his assertion that increased competition in electricity generation will lead to lower prices. The federation argues that the government’s energy reforms are driven by what it describes as a discredited neoliberal ideology rather than evidence and says South Africans should judge the policy by its impact on their daily lives.
Saftu national spokesperson Newton Masuku says competition does not automatically produce affordability. It often produces concentration, monopolies and oligopolies that maximise profits rather than serve the public.
“Eskom’s crisis was not caused by public ownership. It was caused by corruption, state capture, political interference, procurement abuse and years of poor governance. The solution is not to privatise or fragment Eskom. The solution is to rebuild it as a strong, integrated, publicly owned electricity utility capable of providing affordable power, driving industrialisation and supporting economic development,”said Newton
Newton further said that government needs a capable developmental state, democratic public ownership of strategic infrastructure, clean governance, industrialisation, decent work and affordable public services.
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