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PwC lists five key areas for municipal focus in service delivery endeavours

Five key areas of President Cyril Ramaphosa’s February 10 State of the Nation Address (SoNA) will be key to the success of municipalities rolling out services to South Africa’s citizens in the coming years, says professional services firm PwC. PwC government and public sector partner Craig Kesson and strategy and economics partner Lullu Krugel report that the SoNa provides South Africans an opportunity to understand the policy direction of the national government and a synthesis of its strategic approach over the next year.
February 14, 2022 by

South Africa weighs taking on Eskom’s $26-billion debt, IMF says

South Africa’s government is considering taking over part or all of Eskom Holdings’ R392-billion debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund. Eskom’s financial position is of particular concern and requires a decision on how to address its “unsustainable” debt levels, the Washington-based lender said in a statement published on its website following on-line meetings between its staff and South African officials. The local authorities are discussing whether the state should assume part or all of the debt upfront or continue making annual transfers of funds to the company, which could be higher than budget estimates, it said.
February 14, 2022 by

Saice welcomes civil engineering prominence in capacity building, will help ensure sustainable …

Industry body the South African Institution of Civil Engineering (Saice) welcomes that civil engineering features prominently on the scarce skills list President Cyril Ramaphosa referred to during his State of the Nation Address (SoNA) on February 10, when he articulated the need for capacity building, says Saice president Professor Marianne Vanderschuren. Employment remains a critical priority for South Africa and for the civil engineering sector. Saice reiterated its call on government to continue to engage the available resources, entities and professionals in mapping out the far-reaching plans that detailed in the SoNA.
February 14, 2022 by

Energy Intensive User Group welcomes SoNA statements

Nonprofit organisation the Energy Intensive User Group (EIUG) has welcomed the statements made by President Cyril Ramaphosa in his State of the Nation Address (SoNA) on February 10, and says it concurs with the President about the need for “a competitive market for electricity generation and the establishment of an independent State-owned transmission company.” It says Ramaphosa correctly diagnosed the root causes of the South African electricity crisis, being “aging power stations, poor maintenance, policy missteps and the ruinous effects of State capture”, leading to the current electricity supply shortfall of 4 000 MW.
February 14, 2022 by

Draft electricity pricing policy stresses principles of cost-reflectivity and standardisation

The draft Review of Electricity Pricing Policy (EPP), which has been published for public comment, seeks to provide guidelines to the National Energy Regulator of South Africa (Nersa) for a standardised, non-discriminatory approach to electricity pricing in a context of an electricity supply industry “rapidly transitioning” away from its monopoly structure to one that is market based. The document, the release of which was approved by Cabinet last week, was Gazetted by Mineral Resources and Energy Minister Gwede Mantashe on February 10, with a 30-day comment period.
February 14, 2022 by

Redstone CSP project completes first AfDB drawdown

The Redstone concentrated solar power (CSP) project has achieved its first debt drawdown on the largest renewable energy investment in South Africa to date, development finance institution the African Development Bank (AfDB) says. AfDB acted as the mandated lead arranger and coordinating bank, committing R2.31-billion to the transaction.
February 11, 2022 by

Delays, inconsistency and lack of clarity blocking South African renewables rollout

Delays and halted bidding windows in relation to the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) were some of the greatest challenges highlighted by South African renewable energy industry stakeholders, said the South African Wind Energy Association (SAWEA) on February 11. The delays and inconsistent procurement timeline has negatively impacted on the continuous development and investment into industry, SAWEA added.
February 11, 2022 by

Electricity Regulation Amendment Bill points to far-reaching structural changes

The market structure section inserted into the Electricity Regulation Amendment Bill provides for a shift to a competitive multimarket electricity supply industry, which represents a significant departure from South Africa’s long-standing vertically integrated model monopolised by Eskom. Published for comment this week by Mineral Resources and Energy Minister Gwede Mantashe, the new market structure is outlined in Section 32 of the Bill, which is proposed for insertion into the Electricity Regulation Act of 2006.
February 11, 2022 by

Businesses find SoNA lacking; industry takes a more favourable view

Business organisation Business Leadership South Africa CEO Busi Mavuso says business was hoping for a greater sense of urgency and stronger commitment from President Cyril Ramaphosa’s State of the Nation Address (SoNA) to accelerating both the reform agenda and infrastructure rollout. “Overall, BLSA believes the President  could have done more to address blockages to the efficient implementation of already agreed policy and didn’t go far enough to build confidence that 2022 would be the year of delivery.
February 11, 2022 by