In a bid to alleviate the financial strain on Eskom and South African consumers, former Eskom CEO Brian Molefe is championing the regulation of coal prices. Molefe, now a member of Parliament for the uMkhonto weSizwe (MK) party, emphasised the urgent need for stronger regulation during a recent parliamentary debate.
“The price Eskom pays for coal has a direct impact on electricity tariffs, which ultimately affects consumers,” Molefe stressed. “It’s crucial we regulate coal prices to prevent price gouging and ensure fair pricing.”
Molefe’s advocacy stems from his experience at Eskom’s helm, where he witnessed firsthand the fluctuations in coal costs and their effects on the power utility’s expenses. He cited examples of companies like Tegeta supplying coal to Eskom’s Arnot power station at significantly lower rates (R400 per ton) compared to Exxaro’s R900 per ton.
“This disparity highlights the need for regulation,” Molefe argued. “We must ensure fair pricing to mitigate the financial burden on Eskom and reduce pressure on electricity tariffs.”
South Africa’s energy landscape is fraught with challenges, including crippling power outages and escalating tariffs. Molefe’s call for regulated coal prices resonates with consumers and experts alike.
Photo: Supplied
