Today's Labour News

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nersaBusiness Report writes that the National Union of Metalworkers of SA (Numsa) has demanded that the Power Purchase Agreements (PPAs) that were signed with the Independent Power Producers (IPPs) be set aside on the grounds that the National Energy Regulator (Nersa) authorised the agreements without proper public consultation.  

This was one of the proposals the union made on Friday to Nersa, which is hearing submissions on Eskom’s request for a 45% tariff increase over three years.  Numsa rejected any request for a tariff increase, saying:  “It is not in the interests of the working class majority and the poor for Eskom to be granted an increase.  If energy prices go up, it will mean the costs of all basic goods, food, transportation, etc., will also go up and this will worsen conditions for the poor and the working class.  This will also affect small and medium firms negatively as the high cost of Energy will impact negatively on the bottom line, resulting massive job losses.”  The union said IPPs were costly and were part of the reason that Eskom was hugely in debt.  Furthermore, IPPs would result in the loss of at least 100,000 jobs because of the closure of coal plants in Mpumalanga.  Numsa also rejected that “Eskom should be broken up and privatised in order for its problems to be solved.”

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