Tag: Eskom

There are many problems with South Africa, but Eskom and its continuing descent into darkness and chaos seems to be a symbol for all of it. Corruption, mismanagement, theft, incompetence, ideological stupidity, and now, attempted murder.

Eskom, as a state-owned monopoly, with centrally controlled oversight and direction, is not the best structure for the supply of electricity in South Africa, a critical energy source without which no nation can grow and prosper. Better structures are those that have evolved under competitive circumstances in the European Union, United States, and small, forward-looking countries such as New Zealand.

This year has been nothing, if not eventful. We started 2022 with Russian President, Vladimir Putin, declaring war on Ukraine. This event then triggered an energy crisis and has driven inflation, in major economies, to unprecedented levels, along with interest rates. And now, as the year draws to a close, COVID-19 has snuck in again to dominate headlines.

Sustainable societies assume natural resources are finite and aim to practice environmental protection that promotes balance between humans and nature. Adapting sustainability measures can save money in addition to environmental impacts.

The good news stemming from the Medium Term Budget Policy statement (MTBPS) is that in 2023/24, South Africa is expected to achieve its first primary budget surplus in 15 years and this will be achieved with no new revenue enhancing measures from 2023/24 onwards. 

The 2022 Medium Term Budget Policy Statement (MTBPS) was tabled to Parliament on 26 October 2022 by South African Finance Minister Enoch Godongwana.

The conversation started poorly and deteriorate from there. “Triple or single phase?” was his opening gambit. And already I was stumped. “How do I tell?” was my weak retort … and already I could feel his eyes rolling on the other side of the phone.

With South Africa experiencing its worst year of load shedding to date, we’re seeing a surge in demand for alternative power solutions from homeowners and businesses alike. Solar is emerging as a popular option, enabling people to reduce their reliance on Eskom at a time the utility is asking the regulator to approve a 32% increase in power tariffs.

The electricity crisis in South Africa is self-inflicted. This has become clear from the many costly disruptions in electricity supply over too long a period. There is something fundamentally amiss with government policy in this area. At the centre of the problem is Eskom, the leviathan which enjoys monopolistic protection shielded from potential competition.

With South Africans learning to live with the current cycle of stage 6 load shedding, many believe the ongoing power cuts to be the antagonist behind the weak Rand. However, according to treasury experts, load shedding is merely a small contributor to a far greater picture.