Eskom hike to up power piracy

Pretoria - The 35% tariff increases requested by parastatal Eskom, will lead to disconnection and illegal reconnection of electricity around the country, Cosatu in Mpumalanga said on Monday.

"The provincial executive committee meeting resolved to negotiate increases beginning from five percent downwards," the Congress of SA Trade Unions said after its meeting over the weekend.

It said an Mpumalanga delegation attending the Cosatu central executive committee meeting at the start of March was mandated to go and "fight" for that position.

The increases would also result in job losses, would affect small and medium enterprises and have a knock-on effect on the economy.

Cosatu was disappointed that the National Electricity Regulator of South Africa (Nersa) had previously "ignored all submissions" made by different organisations, including Cosatu, and awarded Eskom a 31.3% tariff increase.

Nersa recently completed public hearings on the latest Eskom price hike application.

Cosatu said it also opposed Eskom's proposal to sell-off 49% of its Kusile power plant in Mpumalanga to private investors.

The project was among those identified by the provincial growth and development summit last year to create sustainable and decent jobs, said Cosatu.

"Kusile is a multi-billion project with a capacity to create thousands and thousands of direct jobs and job opportunities," it said.

"Should part of this project be privatised, the people of Mpumalanga and the country will experience more increases on electricity tariffs as the private investors try to accumulate more profit.

"Poor quality of jobs will be created, an increase in corruption and in the levels of poverty in the province," said Cosatu.

It threatened to mobilise society and workers to protest against the privatisation should talks between relevant parties fail. -

- Sapa