More people complaining about soaring municipal bills
On the South African Morning Soapbox, we want to know if you are overwhelmed by rising municipal expenses.
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IOL News
an hour ago
- IOL News
R8. 5 billion investment and 2,000 jobs set to power eThekwini's energy independence
eThekwini has become the first metro in South Africa to receive the green light to generate its own electricity from renewable and low-carbon sources. Image: Supplied eThekwini has become the first metro in South Africa to receive the green light to generate its own electricity from renewable and low-carbon sources. The city has secured approval from the national government to produce 400 megawatts of power, including 100MW from solar energy and 300MW from gas, in a move aimed at cutting reliance on Eskom and boosting energy security. In a statement released to the media on Sunday, the city said the project will unlock R8.5 billion in private investment, create over 2,000 jobs, and save the municipality an estimated R5 billion over the duration of the power agreements. Electricity and Energy Minister Dr Kgosientsho Ramokgopa and eThekwini Mayor Councillor Cyril Xaba announce a historic milestone as eThekwini becomes the first metro in South Africa approved to generate its own electricity from renewable sources, unlocking 400MW in new capacity, R8.5 billion in private investment, and over 2,000 jobs. Image: Supplied Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 'This is a game-changer for our city. It enhances energy security, reduces dependence on the national grid, and positions eThekwini as a leader in sustainable urban development," eThekwini Mayor Cyril Xaba said. "The programme is projected to save the Municipality R5 billion over the duration of the Power Purchase Agreements (PPAs), translating to R250 million in annual savings,' eThekwini Mayor Cyril Xaba said. Xaba added that 'this initiative is not just about energy, it's about economic growth, industrial stimulation, and future-proofing our city,' According to the municipality, the procurement process is expected to be rolled out in phases. The Solar PV Request for Proposals (RFP) will be issued in December 2025, with construction anticipated to begin by September 2027. "Gas-to-Power RFP to follow in 2026, with further details to be announced in due course" Minister of Electricity and Energy, Kgosientsho Ramokgopa, praised eThekwini's move, saying it makes the city the first municipality to use the Electricity Regulation Act to build its own generating capacity. He also warned other municipalities to follow suit or risk losing key consumers to private power producers, which could hurt their revenue and service delivery.
IOL News
3 hours ago
- IOL News
Minister Ramokgopa's call for more affordable electricity can be a game changer
Minister of Electricity and Energy, Kgosientsho Ramokgopa. Image: Supplied/GCIS The Minister for Electricity and Energy, Dr Kgosientsho Ramokgopa, made an important call this past week for the South African National Energy Development Institute (Sanedi) to develop recommendations on how electricity can be made more affordable. Since 2006 when loadshedding first creeped into South Africa, electricity prices have increased by nearly 700%, or a four-fold increase in real terms once consumer price inflation is taken into account. This has bled the meagre wages of the working class, plunging them into suffocating debt and poverty, and impeded their ability to take care of their families or provide a better life for their children. It has stifled economic growth as consumers have had to shift their limited cash towards buying electricity. It has made it difficult for SMMEs to grow or create jobs. More recently it has begun to cripple our mining and manufacturing sectors and other electricity intensive users where electricity bills are now amongst their largest expenditure items. Many foundries have been forced to close, leaving their host rural communities with a bloodbath of job losses and little more than ghost towns. Workers have similarly had to battle rising costs of transport and food due to international oil price increases. In response to these inflationary pressures, the repo rate was increased over the past three years by 475 basis points, adding further pain to the lives of millions of working and middle-class families and an already stagnant economy. Rarely have workers' wages kept pace with these rising costs of living. These are structural shackles an economy sitting on 1% annual growth over the very same period and a 43.1% and rising unemployment rate (which has essentially doubled during this time) can ill afford. It was precisely these challenges that drove Cosatu to draft the Eskom Social Compact that was adopted by government and social partners at Nedlac in 2020. The key objectives of this Social Compact that laid the foundation for Eskom's turnaround plan was not only to ensure the economy has reliable and accessible electricity, but also that it is affordable for consumers and businesses. The first objective of overcoming loadshedding has essentially been won, providing invaluable relief to a struggling economy. This is a major victory that the workers of Eskom and our municipalities must be commended for. We now need, as Minister Ramokgopa said, to move quickly towards ensuring that electricity is affordable if we are to provide relief to the working class and spur badly needed economic growth. There are ten key pillars to achieving this. First, as Eskom has correctly focused upon, is maintaining our generation, transmission and distribution infrastructure. It is far cheaper to do this than to run stations hard until they collapse. That was the approach of previous Eskom management who today claim amnesia. The cost of this was unparalleled loadshedding costing the economy billions. Second is to plug Eskom and municipalities' financial leakages. Key to doing this is for law enforcement organs to provide them the support to tackle corruption, cable theft, vandalism and naked criminality that involves management, officials, businesses and communities. Some of these involved highly sophisticated criminal syndicates and need the full force of the law to break. Treasury needs to help Eskom identify ways to reduce wasteful expenditure and ensure more efficient ways of spending scarce resources. When borrowing debt for investments in infrastructure, government and Eskom must do so from local banks and financial institutions as Rand denominated debt is always far cheaper than those in foreign currencies. The government led by the African National Congress has done well to relieve Eskom of R253 billion or two thirds of its debt burden. This has enabled it to shift its resources to ramping up maintenance and thus unlocking economic growth. This relief will only achieve its full effect when municipal debt is dealt with. In the past few years, we have seen municipal debt owed to Eskom more than double to over R94 billion and counting. This is unsustainable and if Eskom is to survive, let alone to be able to reduce electricity prices, then this gaping hole has to be closed. Eskom needs to be supported to reduce its operating costs including shifting senior management away from cushy offices at Megawatt Park to its power stations where management needs to pay attention. Eskom must be enabled to expand its renewable energy generation capacity as part of its energy mix, to expand clean energy sources and help Eskom reduce its generation costs. Renewables should not simply be the preserve of the private sector. The rolling out of the announced 14 000kms in new transmission lines must be expedited as this will unlock renewable energy generation capacity in the three Cape Provinces as well as reduce transmission costs. Part of Eskom's turnaround and objectives in reducing electricity prices, must also be anchored in uplifting workers, local communities and businesses. Workers and communities, must be supported to become owners of generation capacity, be it solar panels at a factory or mine, or their pension funds investing in generation capacity, in particular through Eskom. This will not only give a sense of ownership of Eskom and its assets to local communities and thus protect them from acts of criminality but also see returns on investment flow back into the pockets of workers and communities. Eskom must source its materials, be it cement or steel, spare parts, solar panels, wind turbines, engines or vehicles from local manufacturers. This will not only save Eskom badly needed resources but also help nurture and sustain these companies and save and create local jobs. Minister Ramokgopa's call if materialised, can be the game changer that the economy desperately needs. Equally an economy in need of growth and jobs cannot afford to see the status quo continue. Sanedi needs to take this task seriously and provide a blueprint to achieve it. Not over the next decade, but a plan that can ensure it becomes a living reality in the next few years. Cosatu President Zingiswa Losi Image: Independent Newspapers
IOL News
3 hours ago
- IOL News
Environmentalists to challenge Eskom's nuclear plans amid concerns over outdated studies
Picture: Dean Hutton/Bloomberg Image: Dean Hutton/Bloomberg Environmentalists and civil society advocates are gearing up for a critical meeting to address the government's contentious decision to uphold Eskom's 2017 Environmental Authorisation for a new 4 000MW nuclear power station in Duynefontein. The decision has sparked intense criticism, particularly due to reliance on outdated Environmental Impact Assessment (EIA) studies, which raised alarms about the risks posed by high seismic activity and dense human populations in the area. The green light for the nuclear project comes after environmentalists, led by groups such as the Koeberg Alert Alliance (KAA), filed appeals against the initial authorisation, arguing that recent developments since 2007 necessitate a reassessment. However, Minister of Forestry, Fisheries and the Environment, Dr Dion George, on Friday upheld the decision granting Eskom environmental authorisation to build and operate the nuclear power station just south-east of Koeberg Nuclear Power Station in the Western Cape. "The granting of an environmental authorisation does not exempt an applicant from complying with any other applicable legal requirements or obtaining permits from other competent authorities," George said. In reaction to this announcement, KAA spokesperson Peter Becker described teh decision as a surprise, adding that civil society will be meeting to discuss the options. Becker said as the EIA process was started in 2007, and so much has changed since then, including population density, and the cost of alternatives, thus it was not rational to ignore these changes in the environment of the proposed plant and to base such a crucial decision on thoroughly outdated studies. "It is of note that the EIA consultants found that Duynefontein (Koeberg) was not the best site for a new plant, due to seismic risks and population density in the area," Becker said. 'It appears the Department of Forestry, Fisheries and the Environment has been pressured to override the consultants' view due to economic factors. It is of course far cheaper to build a new plant where there is already existing infrastructure." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Meanwhile, George argued that the government had carefully reviewed the EIA report, as well as the independent peer review conducted in respect of the project. He said the decision to dismiss the appeals and uphold the environmental authorisation did not automatically grant Eskom permission to begin with the construction or operation of the nuclear power station. He directed that Eskom still had to seek a Nuclear Installation Licence from the National Nuclear Regulator (NNR), approval from the National Energy Regulator of South Africa (Nersa), water-use licences from the Department of Water and Sanitation, and any other relevant approvals, including those from the Minister of Minerals and Petroleum Resources. Becker said given that this EIA process has taken 18 years to complete, it seems unlikely that Eskom will consider any other site as it would have to restart a new EIA. "Nuclear power is already the most expensive technology for producing electricity so Eskom will try to avoid any additional costs, such as a new EIA." Becker said. The Duynefontein site forms part of an ambitious government plan to double South Africa's electricity generation capacity by 2025, aiming to add 20GW of nuclear capacity to reduce reliance on coal and bolster energy security. The project, originally slated for completion with units commissioned as early as 2016, has faced numerous delays and a barrage of criticism from environmental groups. The Department of Environmental Affairs issued environmental authorisation for the 4 000MW Duynefontein nuclear power station on 13 October 2017 but the decision faced backlash from environmentalist groups like Greenpeace Africa, who openly criticised the authorisation. They raised concerns over affordability, safety, and the timing of South Africa's Integrated Resource Plan. 'Greenpeace is strongly opposed to authorising a 4 000MW nuclear power station at Duynefontein,' said Greenpeace Africa senior climate and energy campaigner, Melita Steele. BUSINESS REPORT
