NUM Rejects Eskom Unbundling Strategy, Reiterates Opposition to Privatization of Energy Sector

The National Union of Mineworkers (NUM) has taken note of recent media reports detailing a revised government strategy for the unbundling of Eskom. These reports suggest a new approach aimed at maintaining "strong public oversight" while supporting a "competitive energy market" as defined by the Electricity Regulation Amendment Act (ERAA).

The NUM wishes to be unequivocally clear: We fundamentally reject the unbundling of Eskom in any form. Our long-standing position remains unchanged, regardless of the proposed structural or regulatory revisions.

This policy of separating Eskom into multiple entities (Generation,
Transmission, and Distribution) is a neo-liberal project designed to dismantle a vital state asset and facilitate the wholesale privatization of South Africa’s energy sector.

The NUM’s Position is Rooted in Socio-Economic Reality:

1. Energy is a Public Good, Not a Commodity: Energy is an essential public service that must remain firmly in the hands of the state. The liberalization of the sector, which has proven disastrous in numerous other countries, will inevitably lead to energy being inaccessible and unaffordable for the poor and working class of South Africa.
2. Economic Destruction and Job Losses: The Eskom statement itself concedes that the utility will be significantly reduced in scale due to the introduction of private players. This reduction in customer base, sales, revenue, and profit will lead to Eskom's strategic decline, threatening its role as a key economic pillar and jeopardizing thousands of jobs.
3. Strategic Replacement by Private Players: The inevitable consequence of this unbundling and liberalisation is the calculated replacement of Eskom by profit-driven private entities. We cannot allow the foundation of our national economy to be handed over to those whose primary motive is not public service, but shareholder return.

The South African economy relies on a single, functioning, and publicly owned Eskom. The current trajectory risks the future of energy security and social equity in our country.

The NUM calls on the Government to immediately halt the unbundling process and commit to strengthening Eskom as a unified, state-owned entity.

For more detailed information, please contact:

Khangela Baloyi NUM07 Energy Sector Coordinator, 072 450 6251

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