The complaint is based on Eskom’s abuse of its dominant position in the electricity market and its exclusionary acts. It requests the Competition Commission to investigate the possibility of breaking Eskom into two distinct corporations that separately control electricity generation and transmission, both owned by the State.
This comes after Eskom was deeply implicated in the Public Protector’s “State of Capture Report” as well as the “Dentons Report” and after months during which Eskom has steadfastly refused to follow Ministerial Determinations on the procurement of Independent Power, where Eskom’s management has unlawfully refused to sign Power Purchase Agreements duly procured from the private sector by the Department of Energy. This conduct is presently preventing the investment of ZAR 58 billion into energy generation projects to proceed and as a consequence, the curbing of more than 13,000 construction jobs from commencing.
Eskom is also openly agitating for the building of a large nuclear fleet at an exorbitant cost that will ensure its monopoly into the 22nd century, which is a serious concern for civil society as Eskom’s poor leadership controls and conduct has been the subject of ongoing debate. The numerous calls for a cleanup and no political meddling within Eskom have now been justified following the revelations within the recent Dentons and Public Prosecutor’s reports.
Additionally, the State Owned Entity has repeatedly been accused of a lack of transparency and an inability to curb rampant maladministration and corruption, which has meant the consumer has been lumbered with increased costs of electricity to cover the expensive and excessive outcomes of Eskom’s questionable conduct.
OUTA believes that a separation of control over the arms of electricity generation and transmission will break Eskom’s stranglehold over the grid, thereby ensuring that open competition for energy generation at the lowest cost of production will reach the consumer, assuming political meddling is minimized which in itself may be a separate challenge.
OUTA’s complaint and recommendations to the Competition Commission includes the following:
A full copy of OUTA’s submission to the Competition Commission is found here.
OUTA invites the public to lend their weight to this campaign by indicating support of its submission to the Competition Commission by clicking here.