• Loading

Eskom's billions: money up in smoke

In South Africa, local community groups are raising serious questions about the World Bank's energy strategy, which is focused on fossil fuels - and offers little hope for the people whose need for electricity is greatest.

Chris MatsileleWhen we spoke to Chris Matsilele, he had watched a European Champions League match on TV on Wednesday night, but by the weekend he was mumbling in the darkness of his shack in the evening. The electricity had run out.

It infuriates him. The price of electricity in Capricorn, his township near Cape Town in South Africa, means he has to buy prepaid electricity vouchers when he can afford to.

In some respects, Chris is lucky. There are 1.5 billion around the world without any power at all.

These people are locked in poverty, and this poverty is only getting worse because of the impact climate change is having on the developing world.

Invariably, those struggling to access energy are also those on the frontline of a changing climate.

According to Talent Chitubura, another resident of Capricorn, ‘There is no cheaper and safer alternative available to us.

‘If the government was to give incentives for using any gadgets that convert sunlight into electricity, or safe designed gas-powered appliances, many people would opt for it.’

But for the residents of Capricorn, reliable and affordable electricity is becoming a distant dream. 

No to World Bank Fossil Fool LoanInstead of the cheap, renewable energy they need, the World Bank is instead providing a £2.2 billion loan to Eskom who are building a coal-fired power station – which will provide subsidised energy for big business rather than poor communities.

Furthermore, Eskom itself admits a ‘typical township household’ like those in Capricorn will more than double between 2009 and 2012, with monthly prices rising from R360 (£32) to R760 (£70).

Meanwhile the new plant will emit an estimated 25 million tonnes of carbon per year, and damage the air, water and health of local communities. And of course, over the years, this will accelerate climate change.

Bishop Geoff Davies of Cape Town, who took a lead role in vocal civil society protests against Eskom in spring 2010, says the World Bank’s policy has to change.

‘We believe the World Bank has no ethical position to continue financing the destruction of the planet’s climate by funding coal generation,’ he says.

‘We believe a sustainable energy future is possible if we put power in the hands of the people.’

 

Take action!

Act now!Write to your MP and urge the UK to keep the pressure on the World Bank. No fossil-fuel loans!

 

Clean up the World Bank!

World Bank fossil fuel loans are paying for poverty. Tell them to stop.

Act now!

Factory chimneys

Why the World Bank - and why now?

Find out more