The news last week that Eskom wants South Africans with solar panels to pay more for electricity ‘is a cry for help from a power monopolist in a utility death spiral’, says the IRR.
Eskom has to ‘has to change tack’, first by ‘recognising that prices cannot be raised indefinitely, because doing so only makes things worse’, the IRR says in a statement today.
‘It has to stop increasing tariffs and start stemming the financial losses by cutting costs and increasing its woeful operating efficiency.
‘Secondly, it has to stop punishing its customers for complying with its pleas to use electricity. Customers who save electricity and instal solar panels are paying for this out of their own pockets. They are making a personal sacrifice to help the power monopolist keep the lights on. It is unfair in the extreme to punish them for this.’
Says John Endres, IRR Chief of Staff: ‘It is time to stop the Eskom death spiral. Give #PowerToThePeople by implementing drastic reform policies such as the IRR’s Eskom Recovery Plan. Reward customers for using less electricity and generating their own supply instead of punishing them. Open the electricity generating market to competitors and let Eskom prove its competitiveness on a level playing field.’
South Africans are encouraged to sign the IRR’s #PowerToThePeople petition here.
[Picture: Fré Sonneveld on Unsplash]