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DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 675
DATE OF PUBLICATION: 19 April 2013
675. Adv A de W Alberts (FF Plus) to ask the Minister of Public
Enterprises:
Whether he is aware that the shareholders agreement between Eskom and the
Government does not meet the requirements as stipulated in section 6(5)(b)
of the Eskom Conversion Act, Act 13 of 2001, because the shareholders
agreement does not make provision for the provision of affordable
electricity, as required by section 6(5)(b); if not, what is he planning to
do to correct this error; if so, why were the requirements not met? NW817E
Reply:
The Eskom Shareholder Compact meets the requirements of the the Eskom
Conversion Act, Act 13 of 2001(ECA).
The ECA provides that in determining the Shareholder Compact, the Minister
of the Department of Public Enterprises (Minister) must take into account
Eskomâs developmental role; the promotion of universal access, and the
provision of affordable electricity, taking into account the cost of
electricity, financial sustainability and the competitiveness of Eskom.
In the development of the Shareholder Compact the Minister takes into
account the requirements of the ECA. The Shareholder Compact acknowledges
that electricity prices need to increase, but require a balance between the
need to meet the economic objectives, climate change imperatives,
protection of the poor and sustainability of the industry.
It also acknowledges that a clear, stable and predictable price path is
required to ensure confidence in the economy and to attract investment.