Despite repeated government promises to the contrary, the crisis at Eskom has continued to worsen.
This week the utility hit consumers with a double whammy of higher power prices and what it called an indefinite bout of stage 6 load-shedding.
Eskom’s tariff increase of 18.65%, approved by the National Energy Regulator of South Africa, will come into effect in April. It is due to be followed by a further hike of 12.7% next year.
It will come as cold comfort for consumers that this year’s increase is considerably lower than the 32% that Eskom initially sought, as it is still way above the inflation rate.
An increase of this magnitude will only add to the high cost of living already endured by many South Africans, as well as raising the cost of doing business in South Africa.
Load-shedding is having a disruptive effect on all sectors of economic activity, even putting at risk our food security.
It is particularly devastating for small and medium businesses that cannot sustain the added cost of an alternative power supply. Private homes also have to battle to somehow find the money for power back-up systems.
All of this will jeopardise the growth prospects of an already weakened economy.
This has dire social implications as the unemployment rate soars to unsustainable levels, especially among women and youth.
At the back of the nation’s mind is, of course, the possibility of a total collapse of the grid
Now private and business power consumers face the unenviable situation of having to pay more for power — on the rare occasions that it’s available — while at the same time losing income because of load-shedding.
An enduring problem of the crisis has been the poor communication by both Eskom and the government about the real state of Eskom’s generating capacity, which has become woefully unpredictable.
Those in charge are seemingly unable to give a credible prognosis. This makes it difficult for businesses and individuals to plan their activities.
For instance, it seems no-one knows how long we will stay on stage 6. Nor have we been told if we might end up with even more severe power cuts.
At the back of the nation’s mind is, of course, the possibility of a total collapse of the grid.
These are concerns that the authorities must address, instead of keeping everyone literally in the dark.
An absence of clear, honest and regular communication will only lead to speculation and suspicion and fuel exasperation at the apparent lack of solutions.
For every day that the crisis continues — and gets worse — the government’s repeated promises that it is working on a solution ring increasingly hollow.
Which is understandable, given that the country has been listening to these promises for well over a decade.
If there is a viable solution to deal with the present crisis, the public ought to be told the details, rather being expected to simply take the government at its word.
Obviously, a crucial step is to restore stability to Eskom’s top management, starting with the replacement of the outgoing CEO André de Ruyter.
It is deeply concerning that weeks after he tendered his resignation, De Ruyter’s replacement has not been announced.
It speaks volumes about how the utility, the backbone of the economy, has been run that there does not seem to be a back-up plan in case the CEO had to leave, for whatever reason.
Equally, it is hard to see how Eskom can dig itself out of the crisis with what is essentially a lame-duck CEO, who is due to depart in two months.
The delay in appointing a replacement does not inspire confidence that the government appreciates the urgency of the crisis.
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