16 May 2024

The Congress of South African Trade Unions (COSATU) notes the National Council of Provinces’ passage of the Electricity Regulation Amendment (ERA) Bill.  The essence of the ERA Bill is to provide for the unbundling of Eskom into three separate companies.

COSATU remains deeply concerned about Eskom’s unbundling, including recent announcements of the establishment of its Transmission Company and thus does not support the ERA Bill.

Eskom is facing multiple crises because of endemic corruption, endless wasteful expenditure, rampant cable theft, ill equipped and constantly exiting management and years of under investment in infrastructure.  It is not in a crisis because it is a single public utility.  It solutions rest upon addressing its fundamental crises and not restructuring its corporate shape or creating new boards. 

Separating Eskom into three utilities will create additional Boards and management costs when Eskom can least afford it.  We worry it may weaken Eskom’s ability to plan its generation, transmission and distribution investments or exercise the requisite command and control. 

Workers fear Eskom’s unbundling may be a precursor to its future privatisation and the impact this may have on jobs and electricity tariffs for working class communities.

COSATU will continue working with its Affiliate, the National Union of Mineworkers, to raise workers’ concerns with government and Parliament and to engage with it on solutions to support the continued rebuilding and restoring Eskom as the engine of South Africa’s economic growth and industrial development.

Issued by COSATU

For further information please contact:
Matthew Parks
Acting National Spokesperson & Parliamentary Coordinator 
Cell: 082 785 0687