IPP projects need signing

Parliament’s portfolio committee wants action from Eskom on power producers

THE PORTFOLIO committee on energy has asked the departments of Energy and Public Enterprises to come clean on renewable energy projects and sign contracts with Independent Power Producers.

Chairman of the committee Fikile Majola told both departments yesterday he wanted a report back that would give an indication when these agreements would be signed.

Eskom has stalled over signing with IPPs for several months. But Majola told the two departments and Eskom that the committee wants answers in the next few weeks.

His comments came after Public Enterprises Minister Lynne Brown and Deputy Minister of Energy Thembi Majola assured the committee that the contracts would be signed soon.

However, they did not give dates for the signing of the IPP contracts.

Deputy director-general in the Department of Energy Ompi Aphane told MPs that Eskom had expressed a willingness to sign the contracts.

He said President Jacob Zuma had stressed during his State of the Nation Address in February that the issue of IPPs was important for the country.

He said Eskom planned to resolve its differences with the IPPs and the power utility would sign the contracts.

Aphane warned MPs they must not assume renewable energy was cheaper.

He said there were various processes that would be undertaken by both the Department of Energy and Eskom before the contracts were signed.

Gordon Mackay of the DA said it was ironic that Eskom was telling them about WEDNESDAY JUNE 21 2017 its “woeful” balance sheet and yet it was going to procure nuclear energy, which was much more expensive than renewable energy.

But Aphane said the cost of renewables did not include other external factors.

Mackay added that the IPP contracts would have to be signed by Eskom because it was a legal obligation.

“The law says they have to sign. Eskom has a legal obligation to sign,” he said.

Majola said the committee would have to get answers when Eskom and the two departments return to Parliament in the next few weeks.

A decision will have to be made so that MPs know exactly what is going on, he said.

THE LAW SAYS THEY HAVE TO SIGN. ESKOM HAS A LEGAL OBLIGATION TO SIGN