Eskom Holdings will be allowed to take over the distribution of electricity in South African municipalities that collectively owed the state utility R85.2-billion at the end of last year. The government has offered support to local authorities that have fallen into arrears due to weak revenue generation, poor credit controls and other financial pressures. But only 15 of 71 councils that signed up for a turnaround program have consistently met the conditions to qualify for relief from the state, including demonstrating improved debt collection.
Amid growing dissatisfaction with the performance of many of the country’s 257 municipalities, 162 of which are categorised as being in financial distress, the National Treasury has outlined what it describes as a fundamental shift in the subnational fiscal architecture that moves from oversight to active structural intervention. “At the municipal level, this shift involves changes to legislation, governance arrangements and technological intervention,” the Budget Review states, indicating that the proposed municipal reforms are rooted in the revised White Paper on Local Government.
Power utility Eskom is encouraging communities, environmental groups, industry representatives, government institutions and other interested and affected parties to review, and comment on, a draft cost-benefit analysis (CBA) report and related documents on flue gas desulphurisation (FGD) at the Medupi Power Station, in Limpopo. Eskom had previously applied to then Forestry, Fisheries and the Environment Minister Dr Deon George for an exemption from compliance with certain minimum emission standards (MES) limits for a period in 2025. In response, the Minister on March 31, 2025, issued a directive, requiring Eskom to complete and publish for stakeholder comment a revised and expanded plant-specific CBA for FGD at Medupi.
n this article, EE Business Intelligence MD Chris Yelland writes that South Africa’s electricity market is moving towards a competitive, rules-based, multi-market structure with transparent price discovery and shared responsibility, but warns that the South African Wholesale Electricity Market (SAWEM) alone will not solve South Africa’s transmission bottlenecks, municipal governance failures or legacy debt burdens.
South Africa’s pursuit of energy security and the correct energy mix must be hinged on science-based policy, and government must take on a leading role, Electricity and Energy Minister Dr Kgosientsho Ramokgopa said in a keynote address, on February 24, at the first day of the South African National Energy Development Institute’s (Sanedi)’s third yearly conference, being held this week in Ekurhuleni. He pointed out that with energy and the energy complex being the “defining moment of our time”, stakeholders like Sanedi would be pivotal in helping resolve the questions surrounding this and guiding the country’s policies.
Transalloys, which produces manganese ferroalloys at a smelter complex in Mpumalanga, has again warned that its operations are at risk of closure should the electricity tariff relief granted and being contemplated for the ferrochrome sector not be extended to other ferroalloy producers. In a statement released ahead of the 2026 Budget, CEO Konstantin Sadovnik said while he was not optimistic that meaningful electricity tariff relief for the wider smelting sector would be announced by the Finance Minister, such relief was urgently needed.
In this article, South African Photovoltaic Industry Association (SAPVIA) technical and policy manager Sim Khuluse writes that South Africa’s solar PV sector has entered a pivotal execution phase, with installed capacity now exceeding 10.2 GW and a strong pipeline of utility‑scale projects approaching commercial operation; however, without urgent grid modernisation and clear market rules ahead of the South African Wholesale Electricity Market’s launch, the sector’s current investment momentum could be at risk.
Energy and chemicals group Sasol is aiming to begin ramping up internal coal production and reducing external coal purchases after its destoning plant reached beneficial operation in December. CEO Simon Baloyi said the project, which involved a repurposing of the Twistdraai export coal plant, had been completed within its budget of about R700-million and was facilitating the delivery of coal to Sasol’s Secunda Operations with a total sinks content of about 12%.
Ahead of the 2026 Budget that will be delivered on February 25, the Energy Council of South Africa has called on Finance Minister Enoch Godongwana to prioritise electricity grid delivery and fiscal support for reform in the power sector.
The council says it believes power sector reform is the foundation for economic growth and job creation in South Africa, especially considering the large amount of investment needed in transmission and distribution infrastructure.
Engineering News editor Terence Creamer talks about the recent attention being given to South Africa’s economic reforms.
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