'No proof' that SA power cheaper

Pretoria - There is no documented proof that South Africa enjoys cheaper energy prices than its global counterparts, the SA Pulp and Paper Industry (Sappi) and the SA Institute of Electrical Engineers said on Friday.

Addressing the Nersa public hearings in Midrand and wearing a hat for each of the organisations, Du Toit Grobler said South Africa had been lulled into believing the above was true and without circumspection.

"We spend too much time listening to people and listening to Eskom. It's nowhere documented," said Grobler.

One of the recommendations made on behalf of Sappi was that Eskom should regularly publish the electricity price of other countries and benchmark South Africa's price against these.

Grobler said Sappi did not deny that the price of electricity needed to be increased, but what was problematic was the rate at which it was going up.

"Price can only be countered by reduced demand, through efficiency, [however] energy efficiency improvement cannot be achieved by a magic wand approach."

He said this would entail more planning and research by Eskom, looking beyond three years but instead towards 10. Speaking with the cap and badge of the SAAIEE, Grobler said government needed to be more involved, by providing leadership and direction.

He said the "bad" results that would emanate should a 35% price hike be granted to Eskom, would not only have an impact on ordinary consumers' wallets, but also workers' job security or ability to find employment. Foreign investment in industrial development would also be compromised.

"Ugly" results would include the rush to install industrial and domestic generators by unqualified engineers, which could lead to safety risks. Higher prices might also drive an increase in energy theft and corruption.

Grobler also noted that it had been "the norm" for Eskom to continuously hike its prices for electricity; however, quality had not improved.

"The increased price is not linked to an increase in supply quality. We've almost forgotten about quality of supply." He said there had also been a steady decline in the quality of Eskom's electrical infrastructure.

-Sapa