State power utility Eskom could soon play second fiddle to the private sector when it comes to generating electricity in the country, so says former Eskom chief executive Andre de Ruyter, who also believes the sector can produce cheaper electricity for over 60 million South Africans.
The former Eskom head, who resigned under a cloud and subsequently alleged four government ministers were involved in rampant corruption at the state owned entity, said there was still space for Eskom as part of SA’s electricity sector.
He said he envisaged that the company would potentially no longer play the major role it currently holds in the sector.
De Ruyter made these comments when he appeared virtually at the PSG Financial Services Annual Conference on Wednesday.
De Ruyter, who now lives abroad after fleeing the country fearing for his life after he made damning allegations, said that Eskom would always play a role in energy generation but this role would be limited to electricity transmission.
De Ruyter said he believed that the private sector was far more capable and efficient that Eskom at electricity generation than Eskom.
Moreover, the private sector has more resources to do this role when compared to Eskom’s capability.
He also argued that the private sector could supply electricity to South Africa at a cheaper rate than Eskom.
De Ruyter cautioned government and said that they must resist the temptation to further sink more public funds into the country’s coal-fired power stations.
He said these power stations were ageing and deteriorating and said that government should use these funds to extend Eskom’s transmission grid instead.
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