ROCCI on Coal 3 in addition to Kusile and Medupi

 

Minister of Public Enterprises, Malusi Gigaba’s allusion to a third coal fired power station, whilst sure to raise controversy, heated debates and the ire of the green economists has to be seen in context of SA’s reality.

With both power stations only coming on line by soonest 2014 with the possibility of a further delay, it in no ways alleviates our current tightness of electricity supply to the state of self-sufficiency.

Coal power given the country’s rich resources still remains the cheapest source of energy and therefore the suggestion to build Coal 3 is both timely and visionary.

Nuclear power has its own challenges in respect of risks and costs and current plans to build 3 new nuclear plants by 2029 will bring us back to the 2008/9 era of outages due to demand.

The potential of Shale gas supplementing our energy grid is also a long way off in the horizon.

It is for these reasons that the Chamber welcomes and supports Government on any move to ensure the continuity of electricity supply to meet its immediate and future needs.

ROCCI however cautions Government not to burden the ‘already overburdened tax payer’ with  carrying the costs of Coal 3 in line with the user pay principle, so articulated by Eskom in recent years in disguise of its Build programme requirements.

The tax payer pays its fair share of tax in expectation that in return it will receive the basis services required of its government which includes Electricity.

Any new build programme must be funded by the Government by raising loans and bonds against such capital investment. The consumer is liable for what he or she consumes and adjusted annually as per the CPIX.

Eskom has demonstrated clearly that it does not ‘believe in presenting a forward budget for the revenue collected. What we see and get instead are massive staff parties and bonuses paid to its directors.

Business says Enough is Enough and Government should take heed.

Article done by: Mr. Roy Panday

 Roodepoort Chamber of Commerce & Industry (ROCCI)

Tel:  086 111 3304