How privatisation of Eskom can stop its apocalyptic effect on the economy

Privatisation can unlock Eskom’s potential, according to Neeraj Sanjay Mense, a Senior Industry Analyst at Frost & Sullivan.

The suggestion is to split the struggling utility into generation, distribution and transmission.

The way Eskom operates currently differs substantially from highly successful models that utilities have embraced globally.

Mense expects Eskom to successfully introduce winning features such as “customer as a supplier”, “microgrids” and “demand side management” only once privatisation and unbundling take effect.

Eskom is having an apocalyptic effect on the economy.

Privatising and splitting Eskom into separate generation, transmission and distribution entities would directly benefit the end users and the economy, says Mense.

Numerous examples globally show how, if we can bring electricity prices under control, we can expect increased economic growth.

The Money Show’s Bruce Whitfield interviewed Mense.

Listen to the interview in the audio below (and scroll down for quotes from it).

There is no free market [current structure of Eskom]… you’re not entering into competition…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

Electricity tariffs would be more competitive…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

It’s the future of the electricity generation industry… We are speaking about changing the structure of the electricity generation industry in South Africa… We’re not talking about job losses…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

Eskom is too big to fail… the focus should be on making the entire system more efficient… it won’t happen overnight…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

If you’re looking at its debt… a long-term strategy should be put into place… Eskom needs to change with the times…

Neeraj Sanjay Mense, Senior Industry Analyst - Frost & Sullivan

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This article first appeared on 702 : How privatisation of Eskom can stop its apocalyptic effect on the economy


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