The Portfolio Committees on Energy and Public Enterprises held a joint meeting today to be briefed by the state-owned company Eskom on the state of the national grid and challenges of supply, including short- and long-term mitigation plans.
Energy Committee Chairperson Mr Fikile Majola said the two Committees would be collaborating and working closely with the two Departments (Energy and Public Enterprises) on issues relating to energy in general and electricity in particular. “We know there are serious challenges affecting Eskom and, at another level, that are affecting municipalities. We might have strong views on issues, but our immediate concern is that Eskom should be strengthened to respond to its challenges,” Mr Majola said.
Attending the meeting was Energy Minister Ms Tina Joemat-Pettersson, Public Enterprises Minister Ms Lynne Brown and her Deputy Minister, Mr Bulelani Magwanishe. In her opening remarks, Ms Joemat-Pettersson said the Ministers of Finance, Public Enterprises and Energy meet regularly with Eskom and the National Energy Regulator of SA to have a coordinated approach in dealing with the state-owned company. “The matter has been high on the agenda and we are working tirelessly to find a solution. The continued interest is to find sustainability and stability,” she said.
Ms Brown said Eskom was the cornerstone of the country; the company had to succeed if the country’s economy was to grow. She said one of the challenges was credit rating agencies that were either upgrading or downgrading the company. “I am confident that Eskom will deliver the synchronisation on the first unit at Medupi by December this year,” she said. She added: “It’s a known fact that Eskom has experienced a number of challenges in the recent years.”
Public Enterprises Committee Chairperson Ms Dipuo Letsatsi-Duba said the presentation by Eskom brought to light a number of concerning issues, including credit ratings, ageing plants and financial sustainability. “We are delighted with the information the Committees have presented to us today. We are reassured that there is no crisis as far as keeping the lights on in this country,” Ms Letsatsi-Duba said.
In his concluding remarks, Mr Majola said the government’s policies were clear – it will pursue the task of building a capable developmental state that intervenes and is capable of leading the process of fundamental social and economic transformation of our society. This policy approach will apply to the transformation of the energy sector, he said.