ANGLO’S PLAN WILL REDUCE ELECTRICITY PRICE

Mike Moriarty MPL

DA Gauteng Spokesperson for Finance

The Democratic Alliance welcomes Anglo American’s plans to build a 450MW power plant. The emergence of a competitor energy supply source could begin a process to break Eskom’s monopoly in the electricity supply sector. This would reduce the price of electricity and this would benefit everyone, especially the poorest of the poor.

A reduction in electricity prices would reduce the price of South African goods, leading to increased production and more jobs. This will specifically be the case in Gauteng, the heart of the nation’s economic production.

The irony is that Anglo’s move is not an altruistic one, but is born of necessity in order to provide a secure supply of power. The truth is that Eskom is unreliable, so this development is an indictment on the government-owned entity.

Unfortunately, Anglo has a long road to travel on this project, as the South African energy supply environment is specifically designed to favour Eskom. There are still a number of obstacles that face independent power producers, but it is hoped that Anglo will be able to lobby for the necessary changes to achieve its aims. In the process it will pave the way for others to follow and this can only be a positive development.

Cheaper electricity will be a good thing for everyone. Everyone, that is, except highly-paid Eskom executives.

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