The ability to focus on commercial operations and boost efficiency should allow cross-subsidisation between commercial and social-good functions, writes Tahir Maepa
The ability to focus on commercial operations and boost efficiency should allow cross-subsidisation between commercial and social-good functionsEskom is in a crisis. Repeating such sentiments would be an understatement of the deeper malaise of the country because of years of underinvestment, corruption, poor planning and management.
Speculation is that this is a prelude to privatisation, first hinted at in 1998. This was to be done through an independent system and market operator bill that would have ended Eskom’s monopoly. Eskom would only be involved in electricity generation and compete with independent power producers , while another independent body would handle distribution.
If used correctly, these social-good activities can be beneficial to the country and can be sustainably implemented by offsetting cost against income earned. However, social-good functions are often used as cover for core problems. Failure to operate properly is blamed on the need to meet the social-good mandate and then call for government bailouts. This creates a dependence on state funds that undermines pressure to operate efficiently.
Accountability should not simply mean procedural justice, in which a crime is met with a punishment, but rather, a system that quickly and effectively identifies and neutralises mismanagement before this can do lasting damage.
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