Electricity Minister Kgosientsho Ramokgopa
Electricity Minister Kgosientsho Ramokgopa reports that a “degree of convergence” has been reached between his Ministry and the National Transmission Company South Africa (NTCSA) regarding private sector participation in the electricity grid and no further Cabinet approval is required ahead of implementation.
Speaking at one of his regular updates on the implementation of the Energy Action Plan, Ramokgopa said Cabinet had given its approval for him to proceed, together with the NTCSA, on finalising a model to unlock private financing for the expansion and modernisation of the grid, which had become an impediment to the integration of new generation capacity.
“So, the decision has been made.
“Where we are at now is just the finalisation of that approach with the NTCSA,” Ramokgopa said, adding that it was important that the NTCSA, which was the custodian of the grid, had an opportunity to shape the solution.
“The teams have been meeting consistently and there is some degree of convergence, and once we have firmed up on an approach, we should be able to jointly share that with the markets and the country.”
He also used the platform to highlight recent progress towards the operationalisation of the NTCSA, following lender consent, the passing of resolutions by the Eskom and NTCSA boards and regulatory approval for the transfer of key licences.
The fulfilment of Companies Act requirements remained outstanding, but he reiterated that it was anticipated that the NTCSA would commence trade about two months from the completion of these requirements.
“Once all assets, systems and employees have been transferred to the NTCSA, and trade commences, the NTCSA will be a wholly owned Eskom Holdings subsidiary,” he added, again stressing that there was no intention of privatising the company.