Photo by: Duane Daws
The National African Federated Chamber of Commerce and Industry (Nafcoc) has added its voice to those questioning Eskom’s resistance to connecting new independent power producers (IPPs), saying it is “alarmed” by the State-owned electricity producer’s move.
In a letter sent to Energy Minister Tina Joemat-Pettersson, Eskom chairperson Dr Ben Ngubane indicated that the utility was unwilling, without consultations, to sign further power purchase agreements beyond the preferred projects selected under bid widow 4.5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Nafcoc chief economic adviser Landiwe Mahlangu said the decision would have a “massive and adverse impact not only on the energy sector but on the entire economy at a time when growth is fragile and business confidence is at an all time low”.
Nafcoc noted that the REIPPPP had received world acclaim and was viewed as best practice, despite some shortcomings. “However, these weaknesses call for more rather than less involvement by Eskom,” Mahlangu said in a statement.
He added that, as a State-owned company, the utility had “developmental and transformation” obligations. “These obligations should not be supplanted by short-term and narrow organisational objectives.”
Eskom’s move could also set back the Black Industrialist Programme, with government aiming to use green-economy investments to stimulate the country’s struggling manufacturing sectors and to promote the introduction of black-owned manufacturing enterprises.
“Nafcoc calls for an immediate engagement by all the stakeholders, including Department of Energy the Department of Public Enterprises, the independent power producers associations and energy communities, to reach resolution of this important issue.”