Deputy President David Mabuza says electricity prices will go down if Eskom has competition. The Deputy President was responding to a question on his views about Eskom’s application for a 20.5% electricity increase next year.
Mabuza was answering his last oral questions in the National Assembly for this year.
The Deputy President was in the spotlight as he was grilled about the state of Eskom, as well as the proposed electricity hikes.
Freedom Front Plus Wouter Wessels asks, “Do you Deputy President regard such high price increases in electricity tariffs as sustainable to keep the utility afloat?
“We have now also allowed municipalities where possible if they’ve got the financial muscle to generate energy so that there is competition. If there is a competition I am sure the prices of electricity will come down.”
Mabuza was also asked about the risks associated with Finance Minister Enoch Godongwana’s decision to halt bailouts for state-owned companies, and how would this affect the struggling power utility.
Deputy President David Mabuza answers questions in the National Assembly:
Eskom outstanding debt
However, the Deputy President says the recapitalisation of Eskom won’t be affected, adding that he had confidence in the Eskom leadership.
Mabuza denies that there are plans to sell Eskom. He has also encouraged people to pay for electricity, arguing that more than 20 municipalities owe Eskom R38 billion in outstanding debt.
“We’ve got almost R40 billion that is being owed and that money must be paid we’re going to insist. Eskom wants that money.”
Mabuza was also quizzed about his month-long visit to Russia in July. He conceded that he had gone for medical treatment at his own cost, not the taxpayer.
“What I can say is that as a person concerned, I’m grateful for the progress that I have made so far with regards to my health.”
Meanwhile, the Deputy President has also assured Parliamentarians that the government is doing everything possible to speed up land reform.
Mabuza also said over a billion rand was allocated to support 75 000 small-scale farmers throughout the COVID-19 pandemic.
