‘Eskom cannot be trusted with “load-limiting”, as the same kind of centralisation is what caused the energy crisis in the first place.’ – Martin van Staden, Head of Policy at the Free Market Foundation
Scroll af vir Afrikaanse weergawe.
The Free Market Foundation (FMF) will publish a research paper on privatisation later this year, that will set out how best to go about the privatisation of Eskom. This comes as the embattled state-owned enterprise seems to be fumbling from one bad idea to the next as it tries to stabilise power supply.
The FMF condemns Eskom in particular following the latest reports on ‘load-limiting’, a pilot programme that is currently being run in the Fourways area in Johannesburg.
Load-limiting allows officials to exempt an area from loadshedding, provided end-users limit their power consumption below a prescribed usage. If a household’s consumption exceeds the prescribed usage during loadshedding hours, the power is cut.
Should the project be rolled out nationally, it will cost an estimated R16 billion.
While on paper the idea of load-limiting appears to be a form of relief from loadshedding, the implications are nefarious. Load-limiting, which utilises ‘smart metres’, continues to experience so-called ‘software glitches’, where residents are subjected to usage limitations even outside of loadshedding periods.
The FMF does not regard it as unlikely, that in future Eskom will seek to limit electricity consumption as a matter of public policy, in line with increasing Western demands for the developing world to transition away from fossil fuels.
‘This represents a marked threat to the freedom of electricity users to determine their own affairs, and subjects them to often arbitrary political imperatives set in Pretoria or Europe. Accepting “load-limiting” today, convenience aside, sets an unacceptable precedent,’ says Martin van Staden, FMF Head of Policy.
The FMF believes that taking energy generation out of the hands of the state is the only way to turn the corner on the energy crisis in South Africa. ‘More centralisation by the very people who are responsible for disastrous state of our power supply will only make things worse’, said Van Staden.
‘It is dangerous to allow state employees to determine what appliances you may and may not use: things like geysers, kettles, and inverters are impossible to use during load-limiting. The state cannot be allowed to peer into our homes and directly control our lifestyles’, Van Staden continued, and added, ‘Let us not forget that people are paying for their electricity usage – it is not a handout. Load-limiting, and ultimately even loadshedding, treats it as such.’
The real solution
South Africa’s energy crisis is no more than a shortage, and the answer to shortages has long been understood in the field of economics.
When the demand for a good exceeds supply, the price of that good must be raised to limit demand. As supply stabilises, the price is lowered. Loadshedding is an artificial, uneconomic answer to the crisis, and load-limiting, on top of that, shows Eskom seeking ever-more invasive ways to arbitrarily avoid doing the most sensible thing: increasing the price of electricity.
‘The price mechanism is the best way to ensure that goods and services are provisioned in a society whilst also regulating their demand. While not a popular measure, Eskom must be freed from regulatory shackles and allowed to charge market price for electricity’, says Zakhele Mthembu, FMF Legal Researcher.
‘However, this must not happen until Eskom is privatised, and other energy companies – whether coal, nuclear, or renewable in nature – are allowed to compete with it’, Mthembu continued. Among other things, this is what the FMF aims to set out in its research monograph.
As FMF CEO David Ansara wrote in January on Eskom’s application for a tariff hike:
‘Was Eskom being unreasonable in its 32% application? Is Nersa being unfair with its 18.65% counteroffer? Why did Nersa settle on 18.65% and not, say, 18.55% or 18.75%?
Nobody really knows the answers to these questions because the final price determination is not linked to the true cost of electricity production and distribution. Instead of the market, it is politicians and bureaucrats who determine the price of electricity. Consequently, no amount of modelling by Nersa’s number-crunchers can account for the ever-fluctuating needs of a complex society of 60 million people.’
South Africans must not be tricked into believing that more state control, and more encroachment on their freedoms, will lead to any real improvement in the state of energy supply in the long run. We must instead look to the time-tested solutions provided by the market.
Read more from the FMF on electricity price determination:
https://www.freemarketfoundation.com/south-africas-electricity-price-is-a-thumb-suck
Click here for a soundbite by Martin van Staden.
Ends.
Media enquiries
Anneke Burns
FMF Publicist
071 423 0079 | press@fmfsa.org
***
Eskom ‘lasbeperking’ misdiagnoseer energiekrisis en is ‘n aanval op individuele vryheid – FMF
‘Eskom kan nie vertrou word met “lasbeperking” nie, omdat dieselfde soort sentralisering die energiekrisis in die eerste plek veroorsaak het.’ – Martin van Staden, Beleidshoof by die Vryemarkstigting
Scroll up for English version.
Die Vryemarkstigting (FMF) sal later vanjaar ‘n navorsingsdokument oor privatisering publiseer, wat sal uiteensit hoe om Eskom die beste te privatiseer. Dit kom te midde van die sukkelende staatsonderneming se spronge van die een slegte idee na die ander om kragvoorsiening te stabiliseer.
Die FMF veroordeel Eskom in die besonder na aanleiding van die jongste verslae oor ‘lasbeperking’ (load-limiting), ‘n loodsprogram wat tans in die Fourways-gebied in Johannesburg geïmplementeer word.
Lasbeperking stel amptenare in staat om ‘n gebied vry te stel van beurtkrag, mits eindgebruikers hul kragverbruik onder ‘n voorgeskrewe beperking hou. As ‘n huishouding se verbruik tydens beurtkrag ure die voorgeskrewe beperking oorskry, word hul krag afgesny.
Indien die projek nasionaal uitgerol word, sal dit na raming R16 miljard kos.
Hoewel die idee van lasbeperking op papier as ‘n vorm van verligting van beurtkrag voorkom, is die implikasies boosardig. Lasbeperking, wat gebruik maak van ‘slim meters’, ervaar aanhoudende sogenaamde ‘sagteware foute’, waarin inwoners aan lasbeperking onderwerp word selfs buite beurtkrag-periodes.
Die FMF beskou dit nie as onwaarskynlik dat Eskom in die toekoms elektrisiteitsverbruik as ‘n openbare beleidsaak sal probeer beperk nie, in lyn met die toenemende Westerse eise dat die ontwikkelende wêreld moet wegbeweeg van fossielbrandstowwe.
‘Dit verteenwoordig ‘n merkbare bedreiging vir die vryheid van elektrisiteitsvebruikers om hul eie aangeleenthede te bepaal, en stel hulle bloot aan dikwels willekeurige politieke agendas wat in Pretoria of Europa bepaal word. Die aanvaarding van “lasbeperking” vandag, die gerief daarvan ter syde, skep ‘n onaanvaarbare presedent,’ sê Martin van Staden, Beleidhoof by die FMF.
Die FMF glo dat die verantwoordelikheid van energieopwekking uit die hande van die staat geneem moet word, en dat dit die enigste manier is om die hoek om te slaan met die energiekrisis in Suid-Afrika.
‘Meer sentralisering deur die mense wat verantwoordelik is vir die rampspoedige toestand van ons kragvoorsiening sal slegs sake vererger,’ sê Van Staden.
‘Dit is gevaarlik om staatsamptenare toe te laat om te bepaal watter toestelle jy mag en nie mag gebruik nie: dinge soos geysers, ketels, en ononderbroke-kragtoevoer-eenhede kan nie tydens lasbeperking gebruik word nie. Die staat kan nie toegelaat word om in ons huise in te kyk en direk ons lewenstyle te beheer nie,’ het Van Staden voortgegaan en bygevoeg, ‘Laat ons nie vergeet dat mense betaal vir hul elektrisiteitsverbruik nie – dit is nie ‘n welvaart-uitdeelstuk nie. Lasbeperking, en uiteindelik selfs beurtkrag, hanteer dit as sodanig.’
Die ware oplossing
Suid-Afrika se energiekrisis is niks meer as ‘n tekort nie, en die ekonomiese veld het lank reeds die antwoord op tekorte.
Wanneer die vraag na ‘n produk die aanbod oorskry, moet die prys van daardie produk verhoog word om die vraag te beperk. Wanneer die aanbod stabiliseer, word die prys verlaag. Beurtkrag is ‘n kunsmatige, onekonomiese antwoord op die krisis, en lasbeperking, bo-op dit, wys dat Eskom na al hoe meer indringende maniere soek om arbitrêr te vermy om die mees sinvolle ding te doen: die prys van elektrisiteit te verhoog.
‘Die prysmeganisme is die beste manier om te verseker dat goedere en dienste in ‘n samelewing voorsien word, en vraag ook te reguleer. Alhoewel dit nie ‘n gewilde maatreël is nie, moet Eskom van regulatoriese boeie bevry word en toegelaat word om ‘n markprys vir elektrisiteit te hef,’ sê Zakhele Mthembu, FMF Regsnavorser.
‘Dit moet egter nie gebeur totdat Eskom geprivatiseer is nie, en ander energiemaatskappye – hetsy of hulle van steenkool, kern, of hernubare kragbronne gebruik maak – moet toegelaat word om mee te ding,’ het Mthembu voortgegaan. Onder andere is dit wat die FMF beoog om uiteen te sit in sy navorsingstuk.
Soos FMF Hoof Uitvoerende Beampte David Ansara in Januarie oor Eskom se aansoek vir ‘n tariefverhoging geskryf het:
‘Was Eskom onredelik in sy aansoek vir ‘n 32% -verhoging? Is Nersa onregverdig met sy 18.65% teen-aanbod? Hoekom het Nersa op 18.65% vasgestel en nie, sê, 18.55% of 18.75% nie?
Niemand ken regtig die antwoorde op hierdie vrae nie, omdat die uiteindelike prysbepaling nie aan die ware koste van elektrisiteitsproduksie en -verspreiding gekoppel is nie. In plaas daarvan is dit politici en amptenare wat die prys van elektrisiteit bepaal. Gevolglik kan geen hoeveelheid modellering deur Nersa se syfersdreuners rekening hou met die voortdurend wisselende behoeftes van ‘n komplekse samelewing van 60 miljoen mense nie.’
Suid-Afrikaners moet nie in die waan gelaat word dat meer staatsbeheer, en meer inbreuk op hul vryhede, op die lang duur tot enige werklike verbetering in die toestand van energievoorsiening sal lei nie. Ons moet eerder kyk na die markgebaseerde oplossings wat oor eeue heen bewys is.
Lees meer van die FMF oor elektrisiteitsprysbepaling: https://www.freemarketfoundation.com/south-africas-electricity-price-is-a-thumb-suck
Kliek hier vir ‘n klankgreep deur Martin van Staden.
Einde.
Media navrae
Anneke Burns
FMF Publisiteitsbeampte
071 423 0079 | press@fmfsa.org
