Non-payment Disempowers

The problem with citizens not paying for services is that the time will come when the situation catches up with all of us. Eskom is in that situation today and we are all paying for it. It is a moot point that non-payment is not the only factor contributing to Eskom's challenges. The fact of the matter is it is hurting the utility and we, as a collective, are feeling the effects. It is common knowledge that Eskom has been battling to keep the lights on and has had to implement load shedding to keep the grid stable. The utility has been battling financially and thus making it difficult to buy diesel to keep generators running in order to keep on supplying electricity. The economic effects of load shedding need no emphasis. Factory output has been hit hard and manufacturing activity has slowed down. Growth rate forecasts for our economy have been revised downward. How did we get there? Part of the pain is self-inflicted. When sections of society do not pay their dues, we all suffer.

Earlier this year we learnt that Soweto residents owed Eskom R4 billion. Only 16 percent of the township's residents are said to be paying their electricity bills. And let's not beat about the bush about why this is the case. There is a history of non-payment in South Africa's townships as a political tool. It was prevalent in the 1980s. When the democratic dispensation set in, the pendulum never swung back completely. That was worsened by the misguided belief by some among the new governors and sections of the governed that everything would be made available free. Of course, the new governors, now staring at the near-dry government coffers, have had to summon enough courage to tell South Africans that there are certain things we are going to have to pay our way out of. It is a difficult message - as can be seen with the much-contested e-tolls in Gauteng and demands by Sowetans the other day to pay a flat rate for their electricity. The question Sowetans are not answering, though, is if they consume more than their flat rate, who will pay the difference.

Soweto is not the only party responsible for our collective woes. Earlier this years municipalities were said to be owing Eskom R4.6 billion and there was a huge outcry when the utility threatened to cut supply to 20 defaulting municipalities. There are even government departments and businesses that owe Eskom money. How then do we expect the utility to fulfil its statutory obligation to generate and supply electricity if we do not pay what is due to it? It cannot pray for electricity to rain down from heaven. It must lay out huge amounts of investment to generate and transmit the electricity we all require and use. When the utility asks for a tarrif increase so it can keep the lights on, there is overwhelming opposition. This is where I sympathise with Eskom and those charged with running the organisation. They have a difficult task. Under the circumstances, its acting chief executive Brian Molefe is doing well. He has a plan on the table and has communicated it. Molefe deserves the support of all of us - from the government, labour, business and the individual electricity consumer. He is indeed the rare species - a competent chief executive of a parastatal - that South Africa needs.

Like any taxpayer, I do not like paying more and I am worried about the percentage increase in tariffs that Eskom has asked for. Times are tough and the taxpayer is squeezed to the limit. But I understand why Molefe needs the money. Somehow the balance must be found between what Eskom requires and what the taxpayer can afford. We need a social contract to bring Eskom's funding to the level required - even if that means above-inflation increases for years. But after that sunset period increases must be linked to the inflation rate. Critically, the government must show more probity and respect for public resources if it wants citizens to make more sacrifices and support public entities like Eskom. After all, these entities belong to the people. I sense a lot of resentment and/or lack of awareness by citizens about how their tax money is being spent and how the finances of these public entities work.

Soe