South Africa’s pricing system for Eskom encourages the skipping of maintenance at its power plants.
The Organisation Undoing Tax Abuse (OUTA) argues that instead of operating as a traditional business the power utility is allowed to approach the energy regulator and ask for a tariff hike. It says this does not force Eskom to rethink of how to operate efficiently.
Outa is also advocating for government to formulate a clear energy policy that will centres around renewable energy.
Despite its failings Eskom has been rewarded with a 9.6% tariff hike. Another burden for South African citizens who have to look to other sources of power during rolling blackouts. Eskom has imposed Stage 4 load shedding on the nation.