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The Portfolio Committee on Public Enterprises yesterday received a briefing from the Minister of Electricity, Dr Kgosientsho Ramokgopa, on the country’s energy action plan. This followed a decision by the National Assembly Rules Committee on 23 September that the oversight role of the committee will include the new electricity portfolio.
Dr Ramokgopa informed the committee that the energy action plan is a comprehensive articulation of government’s response to the energy crisis. President Cyril Ramaphosa announced the plan and the associated structures to support the response in July 2022.
Responding to clarity-seeking questions about the Ministry of Electricity that sits in the Presidency, Dr Ramokhopa said this was to ensure that the project management approach to fixing the problem was led by someone with executive authority.
Explaining his role to the committee, he said he is more of a project manager and engineer, and he is happy to go around to every power station to understand how the electricity problems manifest. He told the committee that this would enable him to generate a consolidated report containing some of the real problems at power stations.
The committee raised concerns over the high debt of municipalities to Eskom and the inability of many municipalities to generate their own revenue. Committee Chairperson Mr Khaya Magaxa said it was important to note the announcement made by the Minister of Finance during his Mid-Term Budget speech when it comes to municipalities’ debt to Eskom. He said government has introduced support to relieve municipalities of their debt to Eskom. Municipalities could apply by 31 March 2023 for their Eskom debt to be scrapped. If successful, the debt will be written off over a three-year period in equal annual tranches.
The committee welcomed the presentation and the work that the Minister has done in the electricity sector. The committee also stressed the importance of learning from other countries on how they dealt with such issues and overcame their energy challenges. Referring to the use of coal to generate electricity, the committee, however, stressed that as South Africa learns from other countries, the government should not abandon what had worked for the country so far.
Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee of Public Enterprises, Khaya Magaxa
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