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A Fin24 user working in the energy industry believes Nersa should shoulder some of the blame and use its authority to resolve certain aspects of the crisis.
READ: Time for Nersa to help solve electricity woes
In response, Fin24 user Johan Botha writes:
"It is all good and well to say that the National Energy Regulator of South Africa (Nersa) should come to the party and that more expensive electricity is better than no electricity.
"The fact is, however, that vast amounts of the population (as well as a huge number of municipalities) are in arrears in settling their bills with Eskom and in this manner insure that the rest of the paying public is dragged down into the gutter with them.
"By just collecting these outstanding funds, Nersa can without popular pressure raise tariffs without breaking the bank, yet giving Eskom at least in part the boost that it needs to keep itself going, even if it means they at least have the funds to keep their diesel power plants running.
"So yes, in part I unwillingly have to agree with our Fin24 writer. Raise the price (that unfortunately goes without saying), but crack down on defaulters that leave business and the public in general that pay his/her bills on time from bearing the brunt.
"This is no longer a question of government trying to make itself popular with the masses that were promised free electricity in 1994."
President Jacob Zuma has told the World Economic Forum in Davos that the country's electricity infrastructure was not designed to serve 11 million households.
READ: Zuma: Power grid can't handle population
However, Quinnell feels investments in new power generation capacity should have been made from the word go. "It was done with housing, water and sanitation, and though everything bad that happens in this country is always squarely blamed on apartheid, none of these issues would solve themselves without foresight, true will and honest leadership.
"This unfortunately boils down to the simple question: do you want to pay more for the guy that doesn't want to let go of his belief of ill-conceived promises, as well as the one that cannot pay any more because of the guy that doesn't want to pay and couldn't care less because enriching himself is his first priority, or do you have the financial strength to get yourself off the grid?
"We're in a downward spiral with so many different cons that getting everything back on track to turn the spiral around is simply not going to be achieved without all the necessary efforts available. That includes enforcing the law, raising tariffs, and yes sir/madam, whether you like it or not, denationalising the power industry."
Craig Curling endorses this view. He writes: "Start by getting people to pay for outstanding debt, stop theft & illegal connections."
Renier Venter expounds on the same theme: "I find it strange that this article does not mention the billions owed to Eskom by municipalities and the huge number of illegal connections."
Craig Alborough adds: "I don't think it would be as bad if all the defaulting municipalities paid their debts as well as the other debtors. We are expected to pay extra because of the arrears that make up the shortfall. Also lack of transparency due to corruption is another thought that comes to mind, never mind the wilful theft of electricity in former townships, which is a huge problem."
Richard Quinnell has strong views on the topic. He believes Nersa should be disbanded, or its top management disciplined for incompetence.
"This is one issue," writes Quinnell. "Secondly, it is pointless raising necessary funds through various means but not addressing the problem of municipal debt, especially Soweto and electricity theft."
However, Quinnell feels the ANC, which promised free power to its supporters, should be man enough to confess to voters that it did not speak the truth.
He says: "Eskom was an elite company but is now an embarrassment to SA."
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
