Putting the Multichoice decline in context
Lindsey Schutters
Ramokgopa calls for increased vigilance and affordability programmes
12 Aug 2024
Electricity Minister Kgosientsho Ramokgopa provided an update on South Africa's energy situation, highlighting both progress and ongoing challenges in a media briefing. According to the minister the country is making significant strides in addressing load reduction and advancing its commitment to a just energy transition. “We are doing everything possible to ensure that we are able to address a new phenomenon and that is the issue of load reduction,” he explained. “That has to do with the downstream capacity constraints as it relates to reticulation.”
Minister Ramokgopa provided another updated on the energy action plan.
Load reduction, or scheduled power outages, has been a major concern for South Africans.
The minister acknowledged the difficulties faced by citizens, particularly those who diligently pay their bills but are still affected by load reduction.
He stressed the importance of protecting all consumers, especially low-income households, from the impact of power cuts.
One of the key contributors to load reduction is the substantial debt owed to Eskom by municipalities.
“Eskom is collectively owed about R78bn by municipalities,” Ramokgopa explained.
“In turn, municipalities are owed around R349bn by various categories of customers, including households, businesses, and government entities.”
Free basic electricity
The minister expressed the need for a comprehensive solution that addresses these interconnected debt issues while safeguarding the interests of all stakeholders.
“It's important that we protect everyone, but also ensure that we protect the poor households those who genuinely can't afford, because of economic constraints and number of reasons, to pay their monthly account,” he said.
“We know that there's about 10 million households in this country that qualify for free basic electricity, but only two million are receiving this free basic electricity.”
The government is actively exploring innovative solutions to tackle the load reduction problem.
One such initiative involves collaborating with private sector innovators to pilot a solution that has shown promise in three municipalities.
This solution aims to ensure municipal compliance with grant conditions for debt relief, facilitate debt repayment, and enable customers to pay their current accounts without jeopardising the financial stability of municipalities.
The minister expressed optimism that this pilot programme will yield positive results and contribute to a more sustainable energy landscape.
Just energy transition
South Africa is committed to a shift to a low-carbon economy while ensuring fairness and inclusivity for all affected communities.
The minister highlighted the country's dedication to this goal, emphasising the importance of mainstreaming the conversation around just energy transition and making it part of a broader public discourse.
The Just Energy Transition Investment Plan (JET IP) outlines South Africa's roadmap for achieving its ambitious climate targets.
Ramokgopa stressed the need to leverage both domestic and international resources to finance this transition, noting that the scale of investment required is substantial.
The government has established an inter-ministerial committee to oversee the implementation of the JET IP.
This committee will provide political leadership, monitor progress, and address policy challenges that may hinder the plan's execution.
Ramokgopa is confident that the committee will play a crucial role in ensuring the successful realisation of South Africa's just energy transition goals.
Ramokgopa expects 2,500MW of generating capacity back by the end of the month.
Exceptional generation performance
“Yes we are seeing an exceptional performance on the generation side as a result of the measures that have been put into place,” said Ramokgopa.
“Like I said, this has been engineered, orchestrated and deliberated, and of course all of these things are coming together.”
The minister attributed this success to a combination of factors, including improved leadership, dedicated workforce, and targeted interventions at power stations.
He highlighted the remarkable turnaround at three power stations – Tutuka, Kendal, and Kriel – which have significantly reduced their unplanned capacity loss factors, leading to increased energy availability.
We must remain vigilant and continue implementing measures to strengthen the energy system's resilience.
While acknowledging the progress made, he minister cautioned against complacency, stating that load shedding is not yet behind us.
Eskom is expected to share its summer outlook in the coming weeks, providing further insights into the load shedding prospects for the upcoming season.
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