Break Eskom's monopoly

[The Cosmos]

Cape Town - A rival proposal to improve electricity
supplies to the country was put forward on Monday by the opposition Democratic Alliance.

Its main points involve increasing the flow of funds to drive Eskom's capital expansion, and for the funding of South Africa's renewable energy projects.

The plan was carried by the DA's leader, Helen Zille the mayor of Cape Town, to her meeting to discus the electricity crisis with president Thabo Mbeki later on Monday.

The DA plan calls for the installation of at least two million solar water heaters within metropolitan areas by the end of 2011, and it urges the metro councils to pass by-laws including a requirement for all new buildings or additions to have solar heating installed.

Gareth Morgan, who speaks for the party on environmental affairs, said that the cost - about R12 000 for an average family of four - would be prohibitive, so ways of providing them without cost to the consumer should be found.

One way, he suggested, would be for the government to combine the solar heater subsidy proposed last week with economies of scale and carbon funding under the Kyoto treaty.

An implementing agency would have to take control of the programme, and would install them for free, and charge a rent for them for six to eight years, after which the ownership would revert to the householder.

The rent would be less than the estimated 20% to 30% saving the solar heaters would make on household electricity bills.

Government blamed

The party also calls for an expansion of the Klipheuvel wind power programme to other parts of the country. Morgan urged the government to produce a wind-power atlas by the end of this year, which would show which areas have sufficiently strong and reliable wind speeds.

The government was blamed for failing to provide adequate funds for Eskom's expansion. It needs to commit itself to using some of the budget surplus to make Eskom's plans viable. The party also called on the government to stand as guarantor for the bonds that Eskom would issue to finance its expansion.

Hendrik Schmidt, who speaks on minerals and energy, said that Eskom's monopoly as purchaser of all electricity generated in South Africa should be broken.

The aim would be to allow small and independent power producers to generate and sell electricity to any other companies or individuals looking to buy it.

"The Democratic Alliance will during the forthcoming parliamentary session pursue all available policy and legislative avenues to ensure that Eskom's monopoly is done away with," Schmidt said.

He also called on Eskom and councils to crack down on illegal electricity connections and non-payment of electricity accounts.

"Policing and penalties for non-payment and illegal connections must be stepped up," the party statement on their proposals said, "and the department of provincial and local government needs to negotiate targets for such reductions with councils."

On energy efficiency, the party called for a standardisation of electronic and electrical appliances so that their electricity use when in stand-by mode is limited to one watt, and for 15 million compact fluorescent lights to be distributed by the end of this year.

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2260152



Monopolies should not exist. Period.
Competition is healthy.

[Moederloos]

On energy efficiency, the party called for a standardisation of electronic and electrical appliances so that their electricity use when in stand-by mode is limited to one watt, and for 15 million compact fluorescent lights to be distributed by the end of this year.

Anyone discussed this yet with, I don't know, say, China and Japan?

I despair sometimes.

[BCO]

All of those proposals sound good to me.

[Moederloos]

It is commendable that people are making these plans - please do not think I am taking anything away from that with my last post.

But sometimes, these plans do not seem to be that well thought through.

Some of those ideas ARE good.

[PostmanPot]

Helen FTW!

[Robin Hood]

He also called on Eskom and councils to crack down on illegal electricity connections and non-payment of electricity accounts.

now THIS is a big PLUS!

[DJ...]

Unfortunately none of these proposals will break eskom's monopoly as the thread topic indicated - these are alternative energy initiatives which together (I think) wouldnt power even a quarter of South Africa. We need viable mainstream alternatives to Eskom. The renewable, alternative energy initiatives are all good and well from a long term coal-depency perspective, but from a short term solution to our problem, this isnt it - it might help, but it isnt the real solution.

I am afraid this is more politics being thrown about at the expense of the general public. Hence the reason it was leaked to press before the meeting. DA are trying to use this to their advantage which is understandable. Howver they could have killed 2 birds with 1 stone here:

Why didnt they:

* Identify the real issues facing Eskom, like coal transportation.
* Reveal the corrupt goings on in the Eskom AA and BEE policies and implementation thereof.
* Reveal the aweful political appointments by ANC that resulted in this debacle, stem this all the way to the presidency level
* Show the corrupt relationship between Eskom and guavamint
* They could even be true politicians and make up a revealing and enticing conspiracy theory showing how a select few in govt and their friends/family are making a killing out of these power cuts whilst Eskom has sufficient electricity to supply. (hold on - that wouldnt even need to be a conspiracy theory)

There is plenty more the DA could be doing to turn this situation to their advantage. Some campaigning amongst "shed-hit" areas would go down a treat. How about a look at the privatization route again, this time handled directly by DA representatives - why havent the DA prepared something with more of a political twist, or real suggestions, or invite the prez for a public debate (ANC wouldnt turn down anymore because of ZUMA) to discuss the way forward.

Argh, I have had enough ranting now - our political system is a joke!

[Syndyre]

Sounds good to me, better than anything the ANC's come up with.

[DJ...]

Sounds good to me, better than anything the ANC's come up with.

Yes, but what will actually happen with these suggestions? I predict nothing as usual. Its just more politics.

[Syndyre]

Yes, but what will actually happen with these suggestions? I predict nothing as usual. Its just more politics.

Nothing, the ANC'll ignore it, but at least alternatives are being proposed, the DA can't do much more than that.

[DJ...]

Nothing, the ANC'll ignore it, but at least alternatives are being proposed, the DA can't do much more than that.

Actually, their ultimate goal as a political party should be to obtain as much control in the state as possible. I believe (refer to my previous post) that from a political perspective, they could be doing much more to expose the corrupt goings on within our government and their monopolies and therefore effectively stealing support.

I agree that they are not in a position to action many of the proposals, but they are in a position to facilitate political change if necessary. They are not effectively doing this IMHO.

[Syndyre]

Actually, their ultimate goal as a political party should be to obtain as much control in the state as possible. I believe (refer to my previous post) that from a political perspective, they could be doing much more to expose the corrupt goings on within our government and their monopolies and therefore effectively stealing support.

I agree that they are not in a position to action many of the proposals, but they are in a position to facilitate political change if necessary. They are not effectively doing this IMHO.

I'd agree but the problem from their perspective is that they've just about reached saturation in terms of support levels in the electorate, most of the country is likely to vote ANC regardless of the facts and there's not much they can to do to counter that. They probably already have almost all the votes of the people that don't fall into this category and even if they gained more votes they'd still never win a majority unfortunately.

[capetownguy]

Yes, but what will actually happen with these suggestions? I predict nothing as usual. Its just more politics.

agreed. unless the City of Cape Town goes ahead with its own wind farms and energy solutions none of the DA proposals will go ahead. I don't think the ANC as an organization will go ahead with any DA proposals,regardless of the merit of the proposal. To the ANC and its members/monkeys it would essentially mean that they are being run by the DA and Helen Zille.

[DJ...]

I'd agree but the problem from their perspective is that they've just about reached saturation in terms of support levels in the electorate, most of the country is likely to vote ANC regardless of the facts and there's not much they can to do to counter that. They probably already have almost all the votes of the people that don't fall into this category and even if they gained more votes they'd still never win a majority unfortunately.

Whilst winning a majority would always be 1st prize (although they dont act like it is), merely increasing their voter share is a prize in itself. Now that they have realised that they have saturated their market so to speak, as any well run organisation their plan should be to obtain a share from a market that they have not tapped yet. Here is their opportunity and they are missing the boat completely.

Quick analogy: Coke admits that one of their secret ingredients is actually dog piss. However their dogs can no longer piss like they used to so there will be no Coke supply for another few years. They also admit that they have no reserves because they ignored their advisors about these warnings and instead paid out their senior managers millions in bonuses.

What do you think Pepsi would be doing? Laying back and allowing Coke to rebuild? Or aggresively marketing and distributing to increase their market share? They realise that they will never own the majority, but they can still obtain a greater market share. DA - wake up!

[Syndyre]

Whilst winning a majority would always be 1st prize (although they dont act like it is), merely increasing their voter share is a prize in itself. Now that they have realised that they have saturated their market so to speak, as any well run organisation their plan should be to obtain a share from a market that they have not tapped yet. Here is their opportunity and they are missing the boat completely.

Quick analogy: Coke admits that one of their secret ingredients is actually dog piss. However their dogs can no longer piss like they used to so there will be no Coke supply for another few years. They also admit that they have no reserves because they ignored their advisors about these warnings and instead paid out their senior managers millions in bonuses.

What do you think Pepsi would be doing? Laying back and allowing Coke to rebuild? Or aggresively marketing and distributing to increase their market share? They realise that they will never own the majority, but they can still obtain a greater market share. DA - wake up!

In any normal market I'd agree but that assumes rational consumers acting in their own self-interest etc. which is where the theory breaks down here IMO. To follow on from your analogy, maybe 60% of the SA electorate is the type of consumer that would never consume anything but Coke on principle and would endure shortages, rationing etc. and pay any price while totally disregarding Pepsi's offering, no matter how competitive.

The ANC brand is just too powerful, people will continue to vote for it no matter what it really represents in practice. As the "liberators" they'll always be voted back in, at least for the next generation or so.

The DA's biggest problem is that, rightly or wrongly, they're still seen as the "white party". Until they can get past that stigma they'll never make any real inroads into the ANC's support base.

[DJ...]

In any normal market I'd agree but that assumes rational consumers acting in their own self-interest etc. which is where the theory breaks down here IMO. To follow on from your analogy, maybe 60% of the SA electorate is the type of consumer that would never consume anything but Coke on principle and would endure shortages, rationing etc. and pay any price while totally disregarding Pepsi's offering, no matter how competitive.

The ANC brand is just too powerful, people will continue to vote for it no matter what it really represents in practice. As the "liberators" they'll always be voted back in, at least for the next generation or so.

The DA's biggest problem is that, rightly or wrongly, they're still seen as the "white party". Until they can get past that stigma they'll never make any real inroads into the ANC's support base.

Whilst I agree to an extent, you are assuming that 60% of the Coke drinkers are illogical or irational. Maybe they are to an extent, but only due to the uneducation factor which is the underlying issue. I dont believe that our opposition political parties should sit around doing accepting that they have lost the overall fight - doing nothing is worse than trying and failing!

[Syndyre]

Whilst I agree to an extent, you are assuming that 60% of the Coke drinkers are illogical or irational. Maybe they are to an extent, but only due to the uneducation factor which is the underlying issue. I dont believe that our opposition political parties should sit around doing accepting that they have lost the overall fight - doing nothing is worse than trying and failing!

I'm not saying they are to the core, but at present they are due to lack of education etc. The DA should definitely try and give it their all, I'm just not very optimistic about their chances, even though I think on merit they deserve much more support than the ANC does. But hopefully the voters will eventually prove me wrong, I just don't want to see the ANC's reaction when they do.

[capetownguy]

Exactly. Why would the majority accept a DA plan and lose votes in the process.

[DJ...]

Exactly. Why would the majority accept a DA plan and lose votes in the process.

You mena the ANC? I am not referring to the ANC, I am talking about the DA poaching voters through effective political campaigning to the ANC voters who have been affected by the rolling blackouts.