Electricity Regulation Amendment Act
By Thabo Mosia
In a statement issued by the Economic Freedom Fighters (EFF) on Saturday, 17 August 2024, the party vehemently rejected the Electricity Regulation Amendment Act, recently signed into law by President Cyril Ramaphosa. The EFF, through its national spokesperson Leigh-Ann Mathys, described the Act as a “blatant attempt to privatise South Africa’s electricity generation,” warning that it would “deepen the suffering of our people” and further entrench control over the nation’s resources in the hands of corrupt elites.
The EFF’s statement comes at a critical time as South Africa continues to grapple with an ongoing energy crisis that has seen frequent power cuts, commonly referred to as load shedding. The party has consistently opposed the government’s plans for the energy sector, accusing the administration of deliberately driving state-owned enterprises (SOEs) like Eskom into the ground to justify their privatisation.
Ramaphosa’s Position
In contrast to the EFF’s stance, President Ramaphosa has defended the signing of the Electricity Regulation Amendment Act, stating that it is a necessary step to modernise the country’s energy infrastructure and attract much-needed private investment. The President and the Presidency have repeatedly emphasised that the Act aims to diversify South Africa’s energy mix and promote the introduction of renewable energy sources into the grid, a move they believe will ultimately stabilise the electricity supply and reduce the country’s reliance on coal.
Ramaphosa’s spokesperson, Vincent Magwenya, elaborated on the government’s position, arguing that the Act is designed to “unlock investment opportunities and promote competition” within the electricity sector. The administration insists that these changes will benefit South African consumers by lowering electricity costs and improving the reliability of supply in the long term. However, these assurances have done little to allay the concerns of the EFF and other critics.
EFF’s Allegations Against Gordhan
The EFF did not mince words in its criticism of Public Enterprises Minister Pravin Gordhan, whom the party has repeatedly targeted as the “chief architect” behind what it sees as a concerted effort to dismantle SOEs. The party’s statement accused Gordhan of deliberately weakening institutions like Eskom, South African Airways, and Transnet to pave the way for their privatisation. According to the EFF, this strategy is part of a broader agenda to hand over control of the country’s strategic assets to private interests, at the expense of ordinary South Africans.
The EFF’s statement claims that the government’s mismanagement of Eskom was intentional, aiming to create a crisis that could be used to justify privatisation. The party alleges that the crisis has been exacerbated by the overpricing of coal purchased from entities like Glencore and Shanduka, leading to what they describe as a “manufactured crisis” that serves the interests of profit-driven elites rather than the needs of the people.
Public Response and Broader Implications
The EFF’s rejection of the Act has sparked widespread debate on social media platforms like Twitter, where the party’s supporters have echoed concerns about the potential consequences of privatising electricity generation. Critics of the Act argue that it will lead to higher electricity prices and reduced access to energy for low-income households. Some have also expressed fears that the privatisation of Eskom could result in mass job losses, further worsening the country’s unemployment crisis.
On the other hand, proponents of the Act, including members of the ruling African National Congress (ANC), argue that private sector involvement is essential for modernising South Africa’s aging electricity infrastructure and ensuring a sustainable energy future. They contend that the state alone cannot shoulder the burden of financing and managing the country’s energy needs, particularly in the face of growing demand and the urgent need to transition to cleaner energy sources.
EFF’s Alternative Vision
In its statement, the EFF positioned itself as the only political party with a “coherent and realistic plan” to resolve the electricity crisis. The party advocates for the retention of state control over energy generation, with a focus on repairing existing power plants, implementing clean coal technologies, and reducing the electricity demand of major industrial users through economically viable strategies. The EFF also called for the revocation of preferential tariff deals that were signed with major industrial users during apartheid, which the party argues have unfairly subsidised wealthy corporations at the expense of ordinary South Africans.
Furthermore, while the EFF is committed to renewable energy, it emphasised that South Africa cannot afford to abandon its vast coal reserves. The party advocates for the strategic use of coal to support energy security and economic development, while minimising environmental harm. The EFF’s approach, it argues, would ensure that the benefits of South Africa’s natural resources are shared by all citizens, rather than being concentrated in the hands of a few.
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