Karima Brown and Siseko Njobeni
16 November 2009
Johannesburg — THE African National Congress -led alliance yesterday reiterated its opposition to utility Eskom's proposed 45% electricity tariff hikes, saying "the economy as a whole" could not endure such increases.
" We are uncomfortable with a 45% increase for three successive years," the ruling party's secretary- general, Gwede Mantashe, said late yesterday.
Eskom, which in September applied to the regulator for price rises -- since highly criticised -- of 45% in each of the next three years, would submit a final tariff application for the second multiyear price determination to the National Energy Regulator of SA by the end of this month, spokesman Andrew Etzinger said last week.
The tariff application covers the period from April 1 next year to March 30 2013. The new tariff comes into effect at the beginning of April for Eskom customers and July 1 for municipal customers.
After submitting its original application, Eskom had to consult with the Treasury and the South African Local Government Association , Department of Public Enterprises spokeswoman Ayanda Shezi said last week. "It must then take into consideration their input when it submits the final application."
The latest criticism came from AngloGold Ashanti CEO Mark Cutifani, who last week said such a tariff would hurt the South African gold industry. The National Union of Mineworkers has also come out against the proposed increase. Acting Eskom chairman Mpho Makwana last week said the utility's top management was working on the tariff application.
The summit did not discuss the management problems at Eskom, but Mantashe yesterday said the matter was being led by Public Enterprises Minister Barbara Hogan .
Hogan was in talks with former Eskom board chairman Bobby Godsell to lure him back into the job from which he resigned seven days ago, Shezi said. Godsell had done a good job as Eskom board chairman, Shezi said. Discussions between Hogan and Godsell were continuing "and we will communicate the outcome in due course," she said.
The former AngloGold Ashanti CEO's possible return is likely to stoke the controversy around the departure of former CEO Jacob Maroga. The Black Management Forum lobby group has accused Godsell of meddling in operations.
In the absence of a CEO, acting chairman Makwana has assumed operational responsibilities.
On Friday, Hogan told Talk Radio 702 the government wanted Godsell back at the utility.
"We would like to see normality brought back to Eskom, and if that means bringing Bobby Godsell back, we would like to see that," the minister said.
"We would be very grateful if he would reconsider his position."
On Monday last week Godsell, chairman of the board since July last year, submitted his resignation to Hogan, citing lack of government support. With Sapa
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