ESKOM’S view that it requires a “huge” increase in the electricity tariff in order to meet its requirement to supply sufficient power to the country needs to be subjected to scrutiny.
A further inflation-fuelling tariff increase must only be undertaken as a last resort.
The first and most obvious question that needs to be asked is whether or not the parastatal has exhausted other possible avenues of electricity generation and distribution.
It would seem not. The plan to bring some of the efficiencies of the private sector to bear on this state corporation are gathering dust on the shelves.
There appears to be no effort to properly explore partnerships with the private sector in both the production and distribution of power that would introduce competition and greater efficiency to its pricing structure.
Instead Eskom seems determined to remain the sole provider of power. This view appears to be backed up by government which has made it plain it does not want to break up what it calls “the state silver”.
Then there are other funding models, including borrowing, which would reduce the burden on the consumer which appear to have been rejected in favour of a tariff increase.
Eskom should be able to borrow at highly competitive rates and if this is not so, it should ask itself why.
By hiking the tariff, it is plastering over negative market perceptions of its reliability as a borrower by taking more money from the public and businesses.
This is a recipe for continued inefficiency and uncompetitiveness which is ultimately going to lead to another power-management crisis in the future. Eskom’s appetite for our money must not be indulged. We must demand answers to the difficult questions.

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5. Electricity price hike: Eskom keeps reason secret