Hon Speaker, South Africa's electricity network requires considerable reform over the coming decades if the country is to successfully diversify its generation mix to sources other than coal to meet the increasing demand for power.
We are told that South Africa's energy requirements are running at 2% spare capacity instead of the 10% minimum. South Africa needs 4 000 mw in energy reserves from somewhere for that piece of mind.
Eskom and the government have failed our people through a lack of proper planning. Moreover, the power failures that are taking place are adding to the crisis of political credibility that the postapartheid democratic government is experiencing. The energy crisis is happening against the backdrop of community uprisings, strikes, student boycotts and other forms of mass action that have proliferated in the country, indicating dissatisfaction and the perception of lack of delivery objectives.
About 85% of the country's electricity is used by big business, and that means that most of the electricity is used to make profits. Big business pays 8% more kw, while domestic users pay 26 cents, and the mining bosses pay only 3 cents per unit. Is the dream of liberation indeed being trampled upon on the altar of profit? In the last five years Eskom has also retrenched 30 000 workers, half of its workforce, instead of retraining them.
Cope says the solution lies in government's being honest and more aggressive in introducing more competition in the supply of energy and the variety of renewable energy solutions. Hon Speaker, the lack of urgent and focused investment direction will leave South Africa with a continued energy crisis and our country in darkness. I thank you.