The inclusion of independent power producers (IPPs) to the energy sphere in SA is pure privatisation brought to Eskom through the back door. Our country is under serious attack by the neoliberal agenda that seeks to undermine the gains of our liberation since 1994. The National Union of Mineworkers (NUM) has noted that the decision partially to privatise Eskom has already been taken without our involvement.
The difference between the cost of renewable energy generated by IPPs and the electricity generated by Eskom could affect the utility’s balance sheet adversely. During the deliberations at the Eskom shop stewards council, the NUM came to the conclusion that as much as we support green energy, we cannot ignore scientific facts that green energy is not as cheap as it is portrayed to be by the capitalists who are dealing with it. We know that capitalism is about profit maximisation. Capitalists will go to the extent of misleading society to maximise profits.
We have further noted that green energy is not even reliable. It doesn’t have the capacity to replace the current base load as currently subjectively portrayed. The sun doesn’t shine every day and the wind doesn’t blow every day.
We have a problem with the selective and subjective bias that opportunistically promotes renewable energy as the alpha and omega for SA, while turning a blind eye to the reality that these renewables can’t be used as a base load. An IPP, or non-utility generator, is an entity that is not a public utility, but which owns facilities to generate electric power for sale to utilities and end-users.
What is going to happen if the sun does not shine and the wind does not blow? We will definitely have blackouts. SA had blackouts in 2008-09 mainly because of the interference of politicians in the scientific and business decisions of Eskom. We appeal as the NUM that politicians leave scientific decisions to scientists. The NUM agrees that there should be a reduction in the production of greenhouse gases and strengthened efforts to introduce renewable energy, but this should not result in retrenchments.
We have identified the following effects on SA due to the introduction of IPPs:
• There will be major retrenchments of our members in the energy and mining sectors;
• IPPs are not labour-intensive, in fact, they are the opposite;
• Renewable energy is more expensive than that produced from coal;
• There is no social labour plan associated with the decision to introduce IPPs;
• The whole supply chain in the coal industry will be affected; and
• This will affect the public in that they will have to pay more for electricity, both directly and indirectly.
We have, therefore, concluded that we will begin protest action as soon as possible to voice our opposition to the inclusion of IPPs in the national grid.
The action will include mass action and educating the public on the real effect of IPPs on the price of electricity — that the inclusion of IPPs means Eskom must pay more for a commodity that we can produce at cheaper prices.
If Eskom continues on this path, the effect of this might result in Eskom being bankrupted and being sold to the highest bidder.
On the decision by the power utility to close down five power stations (Hendrina, Kriel, Komati, Grootvlei and Camden), the NUM views this as senseless, irrational, malicious and an attack on ordinary voters.
It is a decision that is only aimed at pursuing selfish business interests, which is none other than a neoliberal agenda.
The NUM wishes to sensitise the government to the effect the closure of these power stations will have. It will cost SA as many as 30,000 jobs, which is contrary to the state’s National Development Plan objective of fighting the triple challenges of unemployment, poverty and inequality.
While we are mindful of the need to deal with climate change, IPPs cannot be implemented at the expense of huge job losses. Workers from those power stations will simply add to the poverty that confronts surrounding communities.
• Sipunzi is NUM general secretary.
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