Dear friend of the FMF
This week’s feature article, written by Nicholas Woode-Smith, explains why the government-enforced monopoly that is Eskom has led to repeated electricity-provision failures and the consistent rise of the cost of electricity. Woode-Smith traces the history of Eskom through its various iterations since Apartheid – a common thread is that it has always been used by the state to eliminate competition. Whereas Eskom could have been privatised, and various independent energy providers could have competed with each other to bring us the best and cheapest electricity, we have been saddled with the economic blackhole that is Eskom.
How government failed to privatise Eskom – NICHOLAS WOODE-SMITH
Government is preventing the private sector from being a solution to South Africa’s rising poverty and declining economy, despite the protestations of policy-makers and bureaucrats. This is very much the case when it comes to electricity generation and distribution. Currently, electricity is monopolised by the state-owned enterprise Eskom, which came under fire for the series of major blackouts in 2008 and since revealed mismanagement.
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Publish date: 13 December 2017
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.