Interview with SA’s Lesetja Kganyago Industrialisation, page 20 WEF package, page 23

Martin said: “We are pleased the legal opinion was so very clear in their opinion that Eskom has no such prerogative. This assures us of the strength of our legal position.”

Sarec said local and foreign investors had responded positively to the renewable energy independent power producer procurement programme to date, partly because the rules had been clear and applied fairly and consistently.

“Tampering with the rules at this stage can only damage confidence in both the programme and the country.”

Eskom has bemoaned the rising costs of electricity from the IPPS.

In the six months ended September 30 last year, the portion of IPP costs in Eskom’s primary energy costs increased, compared with the period ended September 30, 2015.

Legal opinion

Eskom spokesperson Khulu Phasiwe said Sarec was within its rights to seek legal opinion. “We must also not be reckless in how we spend money. We cannot spend money on projects that will put Eskom in financial constraints,” Phasiwe said.

The South African Photovoltaic Industry Association (Sapvia) said that it welcomed Ramaphosa’s comments about the renewable energy IPP programme, but the association indicated the renewable energy industry was under threat from Eskom’s reckless behaviour and flagrant disregard to support South Africa’s stated energy policy.

“We believe that the innovation shown by the renewable energy sector is one that will assist in bringing tangible socio-economic benefits to South African residential, commercial and industrial users going forward. Sapvia will highlight many of those good news stories and innovative ideas… over the next weeks and months,” Sapvia said.