South Africa’s Public Enterprises Committee Reviews Energy Action Plan

PRETORIA – The Portfolio Committee on Public Enterprises received an update yesterday on the national energy action plan from the Minister of Electricity, Dr. Kgosientsho Ramokgopa.

According to Parliament of South Africa, this briefing comes in the wake of the National Assembly Rules Committee’s decision on 23 September to extend the committee’s oversight to the newly created electricity portfolio.

Ministerial Briefing on Energy Crisis

Dr. Ramokgopa outlined the energy action plan, initially announced by President Cyril Ramaphosa in July 2022, as a comprehensive response to the country’s ongoing energy crisis. He emphasized his role as akin to a project manager, focusing on firsthand assessments at various power stations to compile a detailed report on the underlying issues.

Municipalities’ Debt to Eskom

A significant topic during the briefing was the financial struggles of municipalities in paying debts to Eskom, the national electricity utility. Committee Chairperson Mr. Khaya Magaxa highlighted the Minister of Finance’s recent announcement offering support to municipalities. This plan, applicable until 31 March 2023, proposes to write off municipalities’ Eskom debt over three years in equal annual tranches.

Committee’s Response and Recommendations

The committee expressed appreciation for the minister’s efforts in addressing electricity challenges. They emphasized the value of learning from international examples in energy management while cautioning against abandoning proven methods like coal power generation that have historically worked for South Africa.