By Phenyo Selinda
Minister of Energy and Electricity, Dr Kgosientsho Ramokgopa, has moved to assure South Africans that the department is committed, together with the South African Local Government Association (SALGA) and municipalities, to finding an enduring solution to the rising cost of electricity in South Africa. The Minister was addressing a media briefing on Monday morning.
“There’s been an exponential rise in the cost of electricity. Our electricity pricing plan needs to kick in and that’s the primary preoccupation of the work of the ministry now working with Eskom; working with municipalities and working with SALGA,” said Dr Ramokgopa.
The Minister addressed some initiatives by municipalities, which have not been well received by communities. He cited the example of a “surcharge” (also known as a network fee). “We really don’t want to engage publicly on the merits of whether the R200 [surcharge] is necessary or not. What we want to do is to find a more enduring and robust solution to this problem,” he added.
Collaborative Efforts with SALGA and Municipalities
Dr Ramokgopa emphasised the importance of collaboration between the ministry, SALGA, and local municipalities. Discussions with SALGA had already begun during the sixth administration. “There’s an appreciation that it’s important that we pull together. This situation is untenable. Communities are getting more and more enraged [and] people just can’t afford the cost of electricity,” he noted.
The Minister highlighted that while municipalities claim exclusive purview over local electricity pricing, the ministry and SALGA are determined to find a domestic resolution. “As the ministry, together with the Deputy Minister, we have taken a view that we will not fold our arms although that domain… is the exclusive purview of local authorities. Municipalities rightfully say that it’s their domain but we are agreed with SALGA that we are going to resolve this problem domestically,” he said.
Role of Nersa in Addressing Electricity Costs
In finding solutions, Dr Ramokgopa underscored the indispensable role of the National Energy Regulator of South Africa (Nersa). “As an independent authority, they’ve got the duty to protect the consumer, they’ve got a duty to interrogate the proposed tariff increases from Eskom and also from municipalities. So what we’re going to do is not to pressure Nersa but to work with Nersa,” he explained.
The Minister stated that they will insist on a Nersa framework that considers the interests of all South Africans, especially the poor and marginalised. “We are going to insist on a Nersa framework… that takes care of the interests of the poor and the marginalised so that we don’t deny them access to electricity. Protect the interests also of the affluent because we can’t get to a situation where the pricing structure is such that it becomes unaffordable over time but also protects industries… that don’t become competitive as a result of the pricing structure,” he said.
Dr Ramokgopa reassured municipalities of the ministry’s intention to support them through this challenging period. “We will work with the municipalities. We know what you are going through and it is our intention to resolve this question,” he concluded.
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