South Africa’s (SA) National Union of Mineworkers (NUM) has rejected Eskom’s revised unbundling strategy, cautioning that it could open the door to privatisation of the country’s energy sector.
Last week, SA’s Electricity and Energy Minister, Kgosientsho Ramokgopa, approved Eskom’s board-endorsed plan to restructure the state-owned utility into a holding company and four separate subsidiaries. The government says the move aims to create a more competitive electricity market.
NUM’s Energy Sector Co-ordinator, Khangela Baloyi, described the strategy as a “neo-liberal project” that dismantles a key state asset. “Unbundling, by definition, involves separating a company into smaller parts in preparation for privatisation,” Baloyi said. “Privatising Eskom’s market will gradually reduce its revenue and profitability.”
–ChannelAfrica–
