Splitting Eskom doesn’t solve its problems - Dividing the company into generation, transmission and distribution divides responsibility, and could triple the scale of the problems
A feed-in tariff is important for makingnot only viable for the less wealthy but for enhancing its contribution to the overall grid. A feed-in tariff allows households and businesses to make money off any excess solar power they generate. Where this has been adopted, the result is a very rapid increase in home-scale solar particularly as the price of photovoltaics has dropped.
Which of these does splitting the company solve? None. All it will do is triple the number of incompetent boards and managers unless the culture of cronyism, impunity and cadre deployment is ended. If those problems are corrected, Eskom in its existing form will become more viable. If they are not, splitting the company three ways triples the scale of the problem. And, as we have seen from the Australian example, it is not a solution anyway.
If that happened in Australia, why would copying the same idea here work better? We have seen the catastrophic effect of failure to maintain big power plants. Why would we want this for the entire system? — installation of a solar panel on every RDP house, with an initial target of one million homes, to be funded by a combination of government subsidy and cost recovery of a share of the electricity generated for the first five years;— schools and tertiary institutions should be encourage to go solar, with a mix of subsidies for the less wealthy and private funding for the well-funded institutions; and— no subsidy; those who can afford to buy solar should be permitted to feed into the grid with a...
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