Four-point plan for Eskom turnaround
Fin24

Four-point plan for Eskom turnaround

2015-01-21 13:55

Johannesburg - Deputy President Cyril Ramaphosa is correct in saying that the power crisis that originated in South Africa is not just a problem for the government, but that it affects all South Africans, AfriBusiness, a network of Afrikaans business leaders, said on Wednesday.

READ: Ramaphosa to oversee Eskom, SAA turnaround

However, it should be recognised that government should indeed take responsibility for causing the problem, according to AfriBusiness.

AfriBusiness CEO Cornelius Jansen van Rensburg, said the call by government for a collective effort towards finding a solution to the country’s power shortages, is a challenge that all sectors of society should accept.
 
AfriBusiness, therefore, proposes a four-point plan to keep South Africa out of the dark:

- Deregulate the electricity supply industry and the price formation mechanism of electricity;

- Privatise Eskom;

- The electricity distribution network should be managed on a concession basis by private businesses;

- Abandon demands regarding BEE and affirmative action, so that all individuals and communities, regardless of race, can make an equal effort to solve the problem.

READ: As it happened: Eskom won't allow a blackout
   
According to Jansen van Rensburg the core problem with the South African electricity supply industry is that it has been an over-regulated and nationalised industry for more than a century.

“South Africa is now reaping the bitter fruit of a nationalised industry,” he said.

“The only way in which long-term stability in the supply of power to South Africans can be achieved, is by opening up this crucial industry.”

He said Ramaphosa is right: the power crisis is everyone’ problem.
 
According to Jansen van Rensburg the ANC government now has the opportunity "to liberate an industry that has already been nationalised long before 1994, from the heavy government burden resting upon it".
 
To AfriBusiness the question remains whether government is sincere and willing to implement policy changes that falls outside the ambit of its ideological beliefs.

ALSO READ: Transparency key in Eskom plan - expert

Comments
  • Made Inthe South - 2015-01-21 13:12

    Why are Medupi and Kusile 5 years late[Operationally]?Because of violent labour strikes and faulty welding to the boilers,the boilers that Hitachi Power Africa[ZANC owned through Chancellor House] had a R38 Billion contract for.That resulted in them flying in overseas welders to do it over.And adding to cost.Google it Proudly brought to you by the ZANC Alliance[Of which Numsa was a part] MEDUPI AND KUSILE CURRENTLY R40 BILLION OVER BUDGET

      Andre Burrows - 2015-01-21 14:25

      Fruits of AA are bitter.It is rather the stench than the lack of virtue that offends.

      Adrian Bruwer - 2015-01-21 14:34

      And 1 Billion overbudget on take-aways. Eish.

      deepchund.ramchurren - 2015-01-21 15:04

      R40 billion over budget. Malusi Gigaba gave the reason for that, we are still learning "IT IS A VERY BEEEEG PROJECT, WE MADE MISTAKES". He forgot to tell us the ANC thieving was not factored into the cost of the project.

      Fanie Kuhn - 2015-01-22 07:12

      I have an even better ONE-POINT plan to turn around Eskom. Until the ANC education system for it's own prev. disadv. catches up (currently #142 out of 144 cowntries), appoint only middle-aged white males (ageist, racist and sexist in 4 words!!) with a proven track record.

  • Made Inthe South - 2015-01-21 13:17

    Mark my words.None of the above advice will be heeded by ZANC and their Eksdom affiliate.They will say we need nuclear.Russian nuclear to be specific.Lots of tenders and bribes for the cadres.The arms deal will look like a kindergarten party next to the coming Russian nuclear deal.

      Stefan Van Der Spuy - 2015-01-21 14:30

      I'll believe Russian nuclear power stations when I see them. The ANC can't even spell nuclear. Maybe in 2050...

      Made Inthe South - 2015-01-21 14:40

      @Stefan.On Sept 22 last year,the minister of energy Tina Joema Petterson and Rosatom announced in a joint statement that Rosatom will build 8 Russian nuclear reactors on SA soil worth R1 trillion plus.What of that announcement don't you understand?

      Fanie Kuhn - 2015-01-22 07:14

      Stefan, they may not be able to spell "nuclear" or read out a number properly (Zuma, recently), but that doesn't stop them from demanding (note, moderator, I said demanding, not getting) billion rand backhanders.

  • John Stoltz - 2015-01-21 13:33

    If the ANC and ESKOM heeds this expert advice, it will show a total turnaround of their previous imbecilic mindset of always doing the wrong thing for the country! Let us hope they heed the call and do the right thing this time around!

  • Ben Rossouw - 2015-01-21 14:03

    Good luck with that boys, You probably lost their attention COMPLETELY when you suggested that they abandon their BEE cash cow. This means that they will now reboot and default back to their standard settings and call you all racists. You kinda lost credibility with these clowns when they saw the word Afribusiness I suspect.

  • Albert Myburgh Burger - 2015-01-21 14:04

    I love a good Fairy tale... Once upon a time South Africa had a lot of Electricity...

      Hennie Cloete - 2015-01-21 14:25

      And everyone lived in the dark ever after.

      Christian Evans - 2015-01-21 14:26

      True Albert.....and then little RED ANC came along.....and looted the Golden Pot.

      Made Inthe South - 2015-01-21 14:42

      And little red Malema is waiting in the wings

      James Smythe - 2015-01-21 14:43

      In 1994 Eskom had a 40% surplus in generation capacity compared to the demand at that time. In other words the management of Eskom had understood the need to serve their customer base of the time, and created capacity accordingly, with a handsome margin for safety and growth. The planning of course had been based on supply to industry and to mainly white households due to the strictures of the apartheid government and philosophy. But at least the planning and execution was appropriate given those strictures. Today, well, we can see how inadequate (actually, criminally negligent would be a fairer description) has been the planning and execution under the ANC regime.

      Jon van der Heever - 2015-01-21 20:07

      @James, this is true because back then the policy was simple: You don't pay for electricity, you don't get supplied with electricity...period! It's shocking how the ANC and Eskom can't understand this Mickey Mouse concept. Maybe they'll understand this...If you don't pay for your KFC, you don't get your KFC...eish

  • Jak Wiese - 2015-01-21 14:07

    Can I just f-ing freeze myself for 10 years till all this cr*ap is over??? Or would I wake up seeing Cavemen walking around?

      Made Inthe South - 2015-01-21 14:44

      You will wake up seeing cars replaced with donkey carts

      Willie Meerspeel - 2015-01-21 15:51

      you will wake up next week when they load shed your freezer

      Ian Trenor - 2015-01-21 19:26

      Make that a 100 years jak!

  • Carl Dean - 2015-01-21 14:09

    It was all Jan van Riebeek that caused this.

      Albert Myburgh Burger - 2015-01-21 14:11

      Jakop se fkop die

      Made Inthe South - 2015-01-21 14:45

      Jan Zuma of Nkandla caused it all

  • Kenny K - 2015-01-21 14:13

    AG BS..its the BEE boys clamouring for wealth and bonusses who lost sight of the ball...dont blame 100 years...

  • Kobus Hattingh - 2015-01-21 14:13

    Point 1: Get rid of Zuma Point 2: Get rid of all his cronies Point 3: Take back the money they stole from us and sell Nkandla Point 4: Privatise whatever we can (SAA, SABC, Eskom and every institution where the ANC has got a finger in the pie) Problem solved. :)

      Made Inthe South - 2015-01-21 14:47

      Get rid of ZANC as well because Jan Zuma of Nkandla is just the puppet of the communist takeover that happened at Polokwane

  • Hennie Cloete - 2015-01-21 14:15

    Nothing to the positive will be achieved before government and Eskom stopped passing the buck as to the real reasons for this crisis.

  • Neil Bingham - 2015-01-21 14:15

    Bravo AfriBusiness!!!

      Malcolm MacLeod - 2015-01-21 14:58

      Yes indeed

  • Danie Nel - 2015-01-21 14:18

    Make it a five core plan. Employ more white trustworthy people.

      Jaco Van Niekerk - 2015-01-21 14:30

      Let's rather go for: "Make it a five core plan. Employ more trustworthy, qualified (sic) people."

      deepchund.ramchurren - 2015-01-21 15:00

      Are only whites trustworthy?

      Malcolm MacLeod - 2015-01-21 16:13

      Agree with above posters, bringing race into things like this is ridiculous, unnecessary and only serves to hurt anyone, what on earth is going through your head to think that comments like this are approprate? What are you hoping to achieve other than to make white people even more marginalised and hated? Think before you open your pie hole. Stop being part of them problem.

  • Vikraam Moodley - 2015-01-21 14:19

    so which is it: over regulation, nationalisation or apartheid??

  • Pietro Mariani - 2015-01-21 14:22

    "To AfriBusiness the question remains whether government is sincere and willing to implement policy changes that falls outside the ambit of its ideological beliefs." THIS WILL NEVER HAPPEN

      Pietro Mariani - 2015-01-21 14:27

      because the government will never change there policies about bee if they do they acknowledge failure to the people and all the rpomises they made in past. But it would be great if they did go outside there policies then the country will start reviving. Then all thre other ideas and policies have to change. But until greed and corruption are pervasive in the ANC, forget it. This also means they have to start changing there socialist ideas, which once again goes against their policies

  • Anakin Stealthwalker - 2015-01-21 14:33

    "- Abandon demands regarding BEE and affirmative action, so that all individuals and communities, regardless of race, can make an equal effort to solve the problem" And therein lies THE problem, the 'holy cow' that no-one is allowed to criticise. It will mean govt. must accept that the entire AA BEE model of thinking has to be abolished - in it's entirety, not just at Eksdom. Because for those who are pro AA EE BEE BBEE would you... allow just ANYONE to work on your brand new car, lawnmower or TV?

  • Kenny Smith - 2015-01-21 14:38

    Typical ZANC mentality..... Something has to be completely destroyed first before it becomes a problem.... Zero proactive thinking or measures taken whatsoever... Eskom, SAA, SABC, Education, Water affairs and the list continues... So, seems ZANC's main goal is to see just how quickly a complete country can be ruined, Zim style!!

  • Hennie Cloete - 2015-01-21 14:47

    Let's all get back to the drawing board. In my humble opinion time has come that some bright spark invents the candle.

  • Starletha King - 2015-01-21 14:48

    The problem with trying to privatize it now is that it's a disaster of a company. Would you buy shares in Eskom? You won't receive dividends or capital gains for years, maybe even decades.

  • Leon Raulstone - 2015-01-21 14:51

    it will never happen, nowhere will government say no to BEE its how they deploy cadres.

  • William Binedell - 2015-01-21 14:56

    If government privatise all these massive monopolies, what vehicle will it have to compensate comrades and other dumb-wits?

  • Nceba Mbane - 2015-01-21 14:56

    This is true: If it is everyone's problem, then logic suggests that solution must come from everyone. My own 2cents worth suggestion: Get rid of the political appontees. Get rid of the fake president. And get rid of yourself, and go into game farmimg.

  • deepchund.ramchurren - 2015-01-21 14:58

    The electricity crisis is everyone's problem, true as load shedding affects everyone. However, the supply or inability to supply electricity is the problem of Eskom, Mineral and Energy, NERSA and the government, not everyone's problem. Is AfriBusiness trying to suck up to Ramaphosa by agreeing that the crisis is everyone's problem. Renewable energy needs to be maximized before we continually "bank" on the coal fired power stations to overcome problems (sorry challenges) of wet coal, silos cracking, conveyors defective, technical problems (remember technical problems is not the same as poor or no maintenance)

  • pandelani.percy - 2015-01-21 15:13

    What do I have to do with the electricity problem in SA? I've been paying and buying electricity I never got it.

  • Grenville Wilson - 2015-01-21 15:22

    I love point 4 of the plan which will never be adopted.

  • Grenville Wilson - 2015-01-21 15:26

    Ja this plan will never be adopted as it comes from AfriBusiness, a network of Afrikaans business leaders!

  • Willie Meerspeel - 2015-01-21 15:58

    If its everyone's problem, why make it impossible for people who generate excess electricity to give power to Eskom? Allow me to sell power to Eskom and I install Photovoltaics on my roof tomorrow. Solves the problem for me and help eskom out.

      Willie Meerspeel - 2015-01-21 16:02

      oh wait... the people who currently pay will generate their own, the people who dont pay will keep taking more and eskom will have no money. I apologise for my earlier unworkable suggestion

  • Hauke Liefferink - 2015-01-21 15:58

    Step 1,2,3 and 4 should simply be to cut out cANCer.

  • Nevin Narraidu - 2015-01-21 16:22

    I heard somewhere that the reason before 1994 that there was an oversupply of electricity and read it again on this forum was that the majority was still without electricity....hmmmmm go figure

  • Staal Burger - 2015-01-21 20:40

    Give SAA to Sir Richard Branson to run.

  • Kenny Van Heusden - 2015-01-21 20:51

    What were the previous ceo's and management doing there , pulling the wool over our eyes and getting paid massive bonuses to do it. Its a joke that govt could have the wool pulled over thir eyes for so long

  • Chris Kleynhans - 2015-01-22 09:41

    Jansen van Rensburg is so right, there won't be any honesty in any claims that the government and Escom is trying to make that they are trying to resolve this issue, if privatisation and private contribution is not on the table. When there is a demand for goods there is a business opportunity and in free-markets somebody that can make a profit will always put up his hand. Right now, many businesses are involved and many are ready and if the government speaks the right words and change legislation, the problem can be solved in a relative short time in a sustainable way and in a much cleaner way as now. Prices will be pushed lower with competition when abundance is achieved and it will stimulate other industries. When energy is available at affordable rates, business follows. With enough power we can also build many desalination plants and start to solve our water problems. We don't have much time and it is time that the fat cats show courage and act and abandon their self interests.

  • Vanessa Kevan Collocott - 2015-02-07 18:13

    ANC=Another Night with Candles

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