WHY TARGET ESKOM?

Eskom is a State Owned Entity (SOE) of the South African Government. OUTA believes that, as with so many of our state owned and Parastatal organisations, there are sufficient questionable practices a lack of accountability and transparency within ESKOM, to warrant a full time focus on this SOE to ensure the public receives the best service at the lowest cost possible.

From its once respected position at the turn of the century as a leading (top five) low cost energy generator on a global scale, Eskom has sunk to the bottom quartile of energy production utilities in the world, with electricity costs having escalated by over 500% over the last 10 years.

A decade of insufficiencies and questionable conduct

• Eskom has seen numerous executive management come and go, with very little accountability for the poor Governance and performance emanating during their tenure.

• Eskom’s maintenance program has deteriorated to dismal proportions. Electricity interruptions and load-shedding kicked in throughout 2013 and 2014, costing the South African economy several billions of Rands in lost production.

• The development of new power generation plants at Medupi and Kusile has seen a seemingly endless and expensive capital expenditure project that is now five years behind schedule, and 450% overspent on its original budgeted cost of construction.

• Exorbitant electricity tariff increases have taken place to keep pace with the growing inefficiencies.

• Questionable diesel and coal supplier contracts.