Nonprofit association the Energy Intensive Users Group (EIUG) says it broadly welcomes the pronouncements made by President Cyril Ramaphosa in his State of the Nation Address (SoNA) last week.

The association says it is particularly encouraged by the drive and retained focus demonstrated by Ramaphosa on the Energy Action Plan first outlined in July last year, which generally aligns with the EIUG’s views on these matters.

The pronouncements on rooftop solar incentives, diesel support to State-owned utility Eskom and the reiteration of Eskom debt support are viewed by the EIUG as positive.

The association further says the proposed appointment of a new Electricity Minister and the declaration of a national State of Disaster are intended to show clear leadership of the crisis, the urgency required and the intent to foster an enabling environment for recovery and long-term prosperity.

However, the EIUG emphasises that clarity is required on how the national State of Disaster will be used to resolve the crisis and the role the existing and new government functions will play and how they will interact with each other, the National Energy Regulator of South Africa and Eskom.

“Oversight and governance must be put in place to monitor the execution of the Energy Action Plan using disaster powers to prevent any undesired consequences, like power abuse, procurement irregularities and lack of cohesiveness. The plan should be supplemented with clear role definitions, concrete milestones and firm targets,” the EIUG advises.

In the case of the appointment of a new Electricity Minister, the EIUG has called on Ramaphosa to appoint an individual with the necessary gravitas in terms of his/her industry and technical knowledge and the demonstrated ability to deliver, while ensuring sufficient engagement with key role-players.

Moreover, it says the individual will need to be empowered to execute the job at hand, particularly considering that there may be overlapping mandates with the Public Enterprises and Mineral Resources and Energy Ministries.

Equally important will be to shield Eskom from unnecessary conflicting requirements by different ministries and to give the power utility the necessary space to do what has to be done on its part, the association avers.

“We believe the new pronouncements and those announced as part of the Energy Action Plan in July last year will have a tangible positive impact in closing the electricity supply deficit, stabilising electricity prices and decarbonising our grid. This in turn will stimulate economic growth in South Africa and enable social progress.

“We are also encouraged by the government’s intention to expedite implementation of these plans and, as the EIUG, we are committing to work with all the stakeholders, to ensure the realisations of these SoNA pronouncements.

“We therefore reiterate that the real crux of any good plan is swift action by all role-players in recognition of the enormity of the crisis, accompanied by an equally robust monitoring of execution,” the EUIG states.