Ramaphosa’s energy policy not convincing

IN THE president’s weekly newsletter, Cyril Ramaphosa announced a raft of measures and programmes designed to shield poor South Africans from the rising cost of electricity.

From April 1, the tariff is due to shoot up by 18.65% – a move which the president has urged the Eskom board to reconsider.

At the same time, Ramaphosa has stressed the importance of respecting the independence of the National Energy Regulator of South Africa, which had followed “wide-ranging consultation” and “due legal process” in setting the tariffs.

The price hike was necessary for the utility to be able to service its debt and to do the critical maintenance needed to end load shedding, he explained.

So is Ramaphosa for or against the tariff hike?

Judging by the new policies he’s alluded to, we’re all going to have to cough up the additional 18.65%.

These include: free water and free basic electricity allowance for indigent households; free primary health care; exempting pupils from poor families from paying school fees; free tertiary education for students from poor families; and the zero-rating of basic food products.

Other measures government was “considering” were helping households and small businesses install solar power, energy-saving devices and rechargeable lights.

The last – and possibly most optimistic of all strategies – was to “call on all South Africans to pay for the electricity they use”.

All these policies are likely to feature prominently in the president’s State of the Nation Address next month.

Ramaphosa is going to have a tough time convincing the House.

If you’re looking for a more concrete plan for load shedding, you’re better off listening to Cape Town mayor Geordin Hill-Lewis.

The City has recently unveiled a three-phase electricity procurement plan and is hoping to be load shedding-free as it starts tendering for 500MW from independent power producers (IPPs) starting next month.

A third major tender is due to be finalised in a matter of weeks, with more IPP tenders to follow.

Another phase of procurement, also set for launch in February is the Dispatchable Energy tender, such as battery storage and gas to power, which is expected to yield around 500MW for the grid.