National Union of Mine Workers (NUM) Backs Eskom's Legal Challenge, Condemns Political Interference in Energy Sector

JOHANNESBURG – The National Union of Mine Workers (NUM) is in full support of Eskom's legal challenge concerning the trading licenses issued by the National Electricity Regulator of South Africa (NERSA) to five electricity traders. The NUM believes this litigation is essential for establishing clear rules of operation within the energy sector.

The NUM notes with deep concern the public statements from Business Unity South Africa (BUSA), Business Leadership South Africa (BLSA), and the Minister of Electricity, all of whom have called for Eskom to halt its legal action. The NUM views these calls as a direct attempt to politically interfere with the legal process and undermine the principle of the separation of powers. The union insists that the litigation must be allowed to proceed without influence.

"The current arrangements and the lack of clear rules are a recipe for chaos in the energy sector," stated Khangela Baloyi, NUM National Energy Sector Coordinator. "Allowing the court to resolve these disputes is the only way to ensure fairness and stability."

The NUM has a long-standing position against the liberalization of the energy sector, which it views as a precursor to privatization. This process, according to the union, serves only the interests of business and undermines energy accessibility, affordability, and security for ordinary citizens. The NUM highlighted that the current Independent Power Producers (IPPs) are costing the country approximately R47.8 billion—27% of the total primary energy cost—while only supplying 6 Gigawatts of electricity. This is in stark contrast to coal, which costs R83.8 billion (48% of the total) but supplies 81% of the country's energy. This "parasitic" relationship with Eskom’s balance sheet is a key point of concern for the union.

The NUM warned that privatizing electricity will make it unaffordable for most of the population and will jeopardize crucial electrification projects for poor households. The union cited the closure of the Komati Power Station as a prime example of the social and economic devastation that follows such policies, arguing that "capitalism does not care about humanity, all it needs is profit." The NUM stands firm in its opposition to any policies that would create similar problems for South Africans.

In another media report the NUM has noted the announcement that Eskom and African Bank has signed the sale agreements, satisfying a key condition of the transaction, along with several other preliminary requirements for the sale of Eskom Finance company (EFC). As the NUM we characterize this development as a perpetuation of the neoliberal path by the state. This decision was imposed to Eskom by the state as the conditions set by the National Treasury under the debt relief programme, which requires the disposal of non-core assets. This sale is not supported by the NUM. The State failed to consult the employees of Eskom who are also customers to EFC. African Bank had problems in 2014 which might have led to it being liquidated. That risk still exist today which will negatively affect the Eskom employees.

For more detailed information, please contact:

Khangela Baloyi, NUM National Energy Sector Coordinator

The National Union of Mineworkers
7 Rissik Street.
Cnr Frederick Johannesburg
Tel: 011 377 2111 Cell: 083 809 3257
Twitter: @Num_Media

Facebook: https://www.facebook.com/pages/NUM/10086002340216