Pravin’s power plan falls short

While there was some optimism about the appointment of Pravin Gordhan as minister of public enterprises – along with the belief that he can save SA’s disastrous state-owned companies – it was unrealistic to expect a one-time staunch Communist to apply capitalist-style solutions to save Eskom.

That harsh medicine could have included privatising the power company or cutting down its bloated staff.

Gordhan made it plain yesterday, in making public his Eskom rescue plan, that neither of those options are on the table. That was unsurprising, given that the ANC is in alliance with both union umbrella body Cosatu and the SA Communist Party, both proponents of a socialist approach to the economy.

In the end, Gordhan’s plan was long on platitudes and short on realistic, achievable objectives.

Eskom’s employee numbers have been climbing over the past decade, as its efficiency has been sliding. The corporation’s enormous debt (estimated at about R450 billion in total) includes a huge chunk owed to it by defaulting municipalities. That debt is already about R25 billion – and climbing daily. Even more ominous is that the R18 billion owed by the residents of Soweto – an ANC stronghold – has not only not been cut, but continues to spiral upwards.

For ordinary electricity consumers – in other words, the middle-class South Africans who make this economy tick – the outlook can only be bleak, Gordhan’s bailout plan notwithstanding.

Eskom has already given notice that it needs to increase prices by at least 45% to move towards regaining viability. So, we will pay more – and, no doubt – still endure crippling load shedding.

In addition, our taxes will continue to be poured into the bottomless Eskom pit.

Yet, we can confidently predict, nothing will be done to bring the private power users to book in Soweto.

Thanks for nothing, Pravin…

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