By: ESI Africa

Ramokgopa indicated that the configuration of the energy mix is changing and there are more and more renewables that are coming on stream. 

“Eskom is going to participate in new generation capacity on renewables. We’ll come and share that with you. Eskom is not a spectator. It is not just going to the National Transmission Company South Africa (NTCSA) and just buying and buying. 

“Eskom is going to participate because the rules are clear on the new generation who must participate. There is nothing in the amendment that stops Eskom from participating, and we want Eskom to participate.” 

The minister stated that there is no private generator of electricity that will start his or her company with the intention of supplying townships and rural areas and he reminded that there is no private generator of electricity who invests their own money to provide for the poor.

“They will not do it. The only person who can do it is Eskom. And they are owed over R100 billion.”

Risk of Eskom left with the poor and non-payers delinquents

Ramokgopa said this is part of the conversation that he will be creating around licence trading. “How the tariff is structured is that the rich subsidise the poor. That’s how the equation works. So when new players come, they will go for well-paying people.

“So Eskom will be left with the poor or the delinquent.By delinquent, I mean those who have the means to pay but choose not to pay, then Eskom collapses, thus municipalities collapse. 

This is a major, major policy issue. At the heart of the conversation, what about the poor? That’s the question I must answer,” he said. 

Touching on the state of the electricity grid, the minister emphasised the importance of transparency and accountability and ensuring that Eskom share with the general public, customers and the industry the performance status of the grid so that there’s some degree of appreciation of what to expect going forward. 

Ramokgopa was positive about the status of the electricity system: “We are moving in the right direction. We made the promise that we are going to address this situation, and we made the promise that we are confident of our technical ability to resolve what many thought was an intractable challenge.”

He said this winter Eskom worked with a system that is relatively stronger compared to the situation in 2023, and reminded that a number of units came into play during the past few months. 

“We did make reference to the fact that we now have in our armour the Kusile unit number six, and we also indicated that we do expect that during the winter period, we will have the benefit of unit number four.”

Eskom urged to withdraw litigation against Nersa

Touching on the call by the Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA)’s for the government to urgently intervene to protect the national energy reform programme, the minister explained that he has asked Eskom to withdraw a court challenge on electricity trading licences against Nersa.

Ramokgopa said he has broached this subject with the Eskom chair of the board: “I’ve raised the matter, but I don’t yet know if they’ve initiated anything. The conversation took place yesterday [12 August],” he said.

In a statement released last week, BLSA and BUSA urged the Minister of Electricity and Energy to engage Eskom’s board and relevant government entities to secure:

• An immediate cessation of all lawsuits and legal disputes initiated by Eskom against NERSA.
• A public commitment from Eskom to work collaboratively with all stakeholders to fast-track the integration of new generation capacity onto the national grid, in parallel with expanding the grid.
• Clear directives from the appropriate government authorities instructing Eskom to cease its anti-competitive and discriminatory behaviour and fully support the liberalisation of the energy sector.