Latest news with #ElectricityandEnergy
IOL News
09-07-2025
- Business
- IOL News
Government will fine-tune electrification programmes amidst R13bn budget
Minister for Electricity and Energy, Kgosientso Ramokgopa presented the department's Budget Vote in Parliament on Wednesday. Image: Supplied Banele Ginidza Minister for Electricity and Energy, Kgosientso Ramokgopa, has said that as only R13 billion had been allocated to the integrated national electrification programme over the medium term expenditure period, the allocation would be used as a de-risking instrument to crowd in developmental capital and concessional finance. Presenting the department's Budget Vote in Parliament on Wednesday, Ramokgopa said the department was working in close partnership with development finance institutions and the National Treasury in developing an infrastructure finance facility that will enable the frontloading of capital requirements through debt market instruments. "The aim is to mobilise balance sheet financing whilst preserving affordability and fiscal discipline. By using the public allocation as an anchor, the strategy allows for accelerated electricity rollout in high priority provinces and municipalities, greater geographic equity and predictable project pipeline attractive to institutional invetsors," he said. "The approach positions universal access as a bankable development investment with measurable returns in health, education and economic participation." 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 ✕ Ramokgopa said as Eskom's ability to collect revenue for the services provided continued to decline and municipal debt - currently at just below R100bn after compounding by R3bn a quarter over the past year - the department hoped that the the Distribution Agency Agreement (DAA) being put in place would realise benefits for the sustainability of the entire distribution industry. Ramokgopa said the DAA would assist municipalities with their reticulation and distribution of electricity business, revenue collection and retail services. He said the DAA has dual potential to support municipalities to provide sustainable local services while contributing to the sustainability of Eskom. "Some of the benefits realised at these municipalities where these DAAs have been implemented include increased payment levels from 10% to 30% after meter audits and replacement, being assisted to resolve customer disputes with their customers, settle their current accounts with Eskom in full and improved turnaround times to faults," Ramokgopa said. Speaking on behalf of the South African Local Government Authority (Salga), Mayor of Tswelopele Local Municipality, Kenalemang Phukuntsi, said the role of municiplaities was increasingly becoming vague in the amended Electricity Regulations Amendment Act (ERA) of 2024 and Just Energy Transition (JET) programmes. Phukuntsi said while the department's emphasis on a central authority was understandable for coordination, Salga was concerned that the role of municipalities, especially in distribution and the new energy market, was increasingly unclear. She said even within the ERA, the principal place of municipalities as key actors in the future market was not defined in a way that assured of their continued constitutional mandate. Phukuntsi said the Act still introduced a definition for electricity reticulation that Salga deemed as reducing its mandate to just lower levels of customer and voltage. "We still see that as an unconstitutional definition. The minister must still do industry-wide consultation unlike when it was inserted in the Bill without proper consultation. We cannot have a JET if it sidelines the very sphere closer to the core of our communities," she said. Phukuntsi said the strategic plan in the medium term allocations made little reference to the urgent reform required in the electricity distribution industry while the sector was on the verge of collapse in many municipalities. "We urge the department to align its plans with support for real local government, not just technical but institutional and financial and legislative, to ensure municipal distributions are strengthened and capacitated," she said. "We request further urgent clarification on how the roadmap aligns with the JET implementation plan, the National Treasury Metro Trading Entity Reform, and the unresolved issue of municipal debt to Eskom." Phukuntsi said Salga noted that 71% of the R27bn of the medium term allocation was directed to the programmes and projects largely through transfers to Eskom and municipalities. "Salga appreciates the inclusion of municipalities but also calls for the equitable transparent allocation criteria, greater flexibility in grant conditions to prevent funds being sent back to the National Treasury, and therefore disadvantage the communities," she said.
The South African
24-06-2025
- Business
- The South African
Eskom and City Power strike a debt deal
City Power and Eskom have reached an agreement over their long-standing electricity billing and debt dispute. The two parties have been in dispute regarding the amount owed to Eskom as debt and how the power utility bills City Power for bulk electricity supply. During a media briefing on Tuesday, the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, announced that: • City Power will pay an amount of R3.2 billion to Eskom over the next four years • Eskom will write off some R830 million in penalties and related costs 'We have accepted that there are major challenges with regards to tariffs during winter. There is a time of use and during winter, the tariff is particularly heavy, and households, industries and customers find it very difficult to meet their obligations. So, we have accepted that during winter periods, there will be relief in relation to the payment of the R3.2 billion. 'We have been able to write off that R830 million as a result of firstly, they don't have to pay interest on that which is owed. 'Eskom has also conceded with regard to the load shedding estimations and also the penalties that have to do with notifiable maximum demand. 'So, all of those have been removed… totalling to R830 million and that's the concession that Eskom has made,' Ramokgopa explained. The Minister said the resolution of the dispute between the two entities can be used as a template for other struggling municipalities. 'We are excited about this development. We also have something similar in Tshwane and as and when municipalities come forward, we will have these discussions on how best to provide a degree of relief. 'Of course there must be a case that is presented, accepting that Eskom has also got its obligations… they need to collect because they generate electricity. 'That costs money and they must recover that money from the end user to reinvest it back into their asset base and into the generation of electricity,' Ramogkopa added. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
20-06-2025
- Business
- IOL News
EEskom employees pocket R3bn in overtime during turbulent year
Electricity and Energy Minister Kgosientsho Ramokgopa has disclosed that R10 million was paid to Eskom board members and R3 billion in overtime to employees. Image: Henk Kruger / Independent Newspapers ESKOM employees pocketed R3 billion in overtime during the 2023/24 financial year. This was for work outside the normal working hours that was approved for an emergency during a standby period, breakdown of plant, pre-arranged plant maintenance, commissioning of plant, authorised construction work on site or critical personnel shortages only for short periods not exceeding one month, among other things. 'Approximately 92% of the workforce is eligible for overtime,' said Electricity and Energy Minister Kgosientsho Ramokgopa. He was responding to parliamentary questions from EFF MP Mandla Shikwambana, who enquired about the annual expenditure on overtime for Eskom employees and the circumstances under which overtime was paid. Shikwambana also wanted to know whether the 22 board meetings, averaging two meetings per month, as reported in the 2024 annual report, were pre-planned and the reasons for not planning them. He also asked the total remuneration of each board member and whether the board members were subject to individual performance reviews. The board of directors was paid more than R10 million in board fees. He said 22 board meetings were held, and at least 10 were pre-scheduled for the period between April 2023 and March 2024. He said non-executive directors had not been paid per meeting but had received a fixed annual fee based on their committee allocations. 'This fixed fee implicitly covered participation in up to eight scheduled board meetings. The remaining 14 meetings that exceeded the planned schedule did not attract any additional fees.' Board chairperson Mteto Nyati was paid R1.3m, Fathima Gany R1,081,000, Claudelle von Eck R1,061,000, Clive Le Roux R1 058 000 and Tryphosa Ramano R1,018,000. Electricity minister Kgosientsho Ramokgopa, Image: Jairus Mmutle/GCIS Other board members - Leslie Mkhabela, Busisiwe Vilakazi, Bheki Ntshalintshali, Tsakani Mthombeni, Ayanda Mafuleka and Lwazi Goqwana - were paid amounts ranging from R933,000 to R676,000. Ramokgopa said the amounts paid included fees for both board meetings and sub-committee meetings. The additional meetings had been convened on an ad hoc basis to address urgent and time-sensitive matters that had required the immediate attention of the board. 'Several of these engagements had been necessitated by unforeseen and evolving developments. These additional meetings had not resulted in any additional payment of fees to the non-executive directors,' he said. The additional meetings had primarily dealt with the group chief executive recruitment, National Transmission Company of South Africa board of directors recruitment, and the unbundling matters. CAPE TIMES
IOL News
19-06-2025
- Business
- IOL News
Eskom financial report reveals board fees over R10 million and R3 billion in employee overtime
Electricity and Energy Minister Kgosientsho Ramokgopa has disclosed that R10 million was paid to Eskom board members and R3 billion in overtime to employees. Image: File The Eskom board of directors was paid more than R10 million in board fees during the 2023/24 financial year, while the entity's employees pocketed R3 billion in overtime during the same period. This was disclosed by Electricity and Energy Minister Kgosientsho Ramokgopa when he was responding to parliamentary questions from EFF MP Mandla Shikwambana, who enquired about the annual expenditure on overtime for Eskom employees and the circumstances under which overtime was paid. Shikwambana also wanted to know whether the 22 board meetings, averaging two meetings per month, as reported in the 2024 annual report, were pre-planned and the reasons for not planning them. He also asked the total remuneration of each board member and whether the board members were subject to individual performance reviews. In his written response, Ramokgopa said employees pocketed R3.03 billion during the 2023/24 financial year He said the payment was for work outside the normal working hours that was approved for an emergency during a standby period, breakdown of plant, pre-arranged plant maintenance, commissioning of plant, authorised construction work on site or critical personnel shortages only for short periods not exceeding one month, among other things. 'Approximately 92% of the workforce is eligible for overtime,' Ramokgopa said. He said 22 board meetings were held, and at least 10 were pre-scheduled for the period between April 2023 and March 2024. He said non-executive directors had not been paid per meeting but had received a fixed annual fee based on their committee allocations. 'This fixed fee implicitly covered participation in up to eight scheduled board meetings. The remaining 14 meetings that exceeded the planned schedule did not attract any additional fees.' Ramokgopa also said the additional meetings had been convened on an ad hoc basis to address urgent and time-sensitive matters that had required the immediate attention of the board. 'Several of these engagements had been necessitated by unforeseen and evolving developments. These additional meetings had not resulted in any additional payment of fees to the non-executive directors,' he said. The additional meetings had primarily dealt with the group chief executive recruitment, National Transmission Company of South Africa board of directors recruitment, and the unbundling matters. Board chairperson Mteto Nyati was paid R1.3m, Fathima Gany R1,081,000, Claudelle von Eck R1,061,000, Clive Le Roux R1 058 000 and Tryphosa Ramano R1,018,000. Other board members - Leslie Mkhabela, Busisiwe Vilakazi, Bheki Ntshalintshali, Tsakani Mthombeni, Ayanda Mafuleka and Lwazi Goqwana - were paid amounts ranging from R933,000 to R676,000. Ramokgopa said the amounts paid included fees for both board meetings and sub-committee meetings. 'The non-executive directors were remunerated by way of a fixed annual fee, which was determined based on their allocation to specific committees. This fee structure was not linked to the number of meetings attended. In addition to the fixed fee, non-executive directors were reimbursed for any reasonable out-of-pocket expenses incurred in the execution of their duties,' said the minister. He further said that a collective assessment approach was currently in place based on the principle of a board of directors functioning as one unit. 'The last collective performance assessment of the board was undertaken in the financial year of 2024, and the outcomes of this assessment were shared with the shareholder representative.' [email protected]
Daily Maverick
01-06-2025
- Politics
- Daily Maverick
ANC succession battle — the pros and cons of the top candidates vying for Ramaphosa's job
While it is unclear who will take over from President Cyril Ramaphosa as leader of the ANC, their ability to win votes will be extremely important. It may be constructive to examine what five of the most likely candidates would bring to the electorate. As our politics becomes more competitive than ever before, the identity of the leader of each party has become more important. One of President Cyril Ramaphosa's great strengths when he became leader of the ANC was that he was more popular than the party. The ANC itself said that he played a major role in helping it win the 2019 election (this was hugely contested at the time, and the then secretary-general, Ace Magashule, was forced to publicly disavow his comment that Ramaphosa had not played an important role). Ramaphosa's deteriorating popularity among voters, partly due to his inaction against corruption, and the Phala Phala scandal, might well have played a role in the ANC's dramatic decline last year. This shows how important the vote-winning ability of a new ANC leader will be. While it is not clear who will contest the position at the ANC's electoral conference in 2027, there is plenty of well-informed speculation that candidates could include Deputy President Paul Mashatile, International Relations Minister Ronald Lamola, Police Minister Senzo Mchunu, Electricity and Energy Minister Kgosientsho Ramokgopa and the ANC secretary-general, Fikile Mbalula. Paul Mashatile There is little evidence that Mashatile has broad support among the electorate. His apparent inability to communicate a distinct message during his time as Deputy President suggests he is finding it difficult to create space in which to move. This could be a function of the position he holds. Deputy presidents are often subject to intense scrutiny, and people look for evidence of their ambition for the top job, which could be why he has not, so far, articulated a particular vision. Mashatile's public speeches in English are often stilted. His answers to parliamentary questions are, frankly, boring. He does not say anything new, and his delivery comes across as wooden. As a result of having no apparent message, the narrative around him is dominated by claims that he has benefited from fishy financial deals. He has failed to properly and publicly condemn the violence used by his security officers when they assaulted the occupants of a vehicle on the N1 highway. It is difficult to imagine him crafting a coherent message as the leader of the ANC. On the election trail he probably won't provide much help to the party. His position as Deputy President means he doesn't have responsibility for any particular portfolio. However, for the contenders Lamola, Ramokgopa and Mchunu, what happens on their watch reflects on their public images. Ronald Lamola The minister of international relations and cooperation is a high-profile position — but it is overshadowed by the President. In some instances, for example, SA's genocide case against Israel, Lamola has been able to take the lead. However, in the hardest and most high-profile issue, dealing with the Trump administration, Ramaphosa has taken over. What Lamola does have, almost uniquely in the ANC, is the ability to connect with younger voters. His age (41) makes him one of the youngest leaders in the party. He is relatively unscathed by the scandals that have surrounded so many people in the party. That said, if he were to undergo more scrutiny, he would have to answer questions about how his law firm failed to notice the massive corruption at the National Lotteries Commission, when it was tasked with investigating it. Kgosientsho Ramokgopa The public perception of Ramokgopa is entirely linked to load shedding. He is an excellent communicator and has ensured that he, the government and Eskom have controlled the narrative whenever load shedding is instituted. He is associated with the successes in dealing with load shedding — and also the failures. He will also appeal to voters who want a technocratic face for the ANC. He can give the impression to black professionals that he is one of them, that he speaks their language and can get things done. Sipho Mchunu Mchunu appeals to a slightly different constituency. Crucially for him and the ANC, he could win back voters in KwaZulu-Natal. This province voted for the ANC when former president Jacob Zuma was its leader, then appeared to move in the direction of the ANC and the IFP when Ramaphosa took over, only for large numbers to vote for Zuma's uMkhonto Wesizwe party in the last elections. Mchunu may well be able to develop a crucial constituency in this province for the ANC, where he was once its provincial secretary. Nationally, it would be a huge card in his favour if he were seen to be leading a successful effort to reduce violent crime. However, the problem of SA's crime is so large and is so intertwined with aspects of our politics that Mchunu is unlikely to be able to make much difference. Fikile Mbalula Mbalula, of course, is not in government. It is his position as secretary-general of the party that might give him the edge in any internal ANC race. In the past, the position of secretary-general has been shaped by the personality occupying it. Gwede Mantashe imbued the office with huge authority, while Kgalema Motlanthe had more of a quiet legitimacy. Lately, Mbalula has appeared to be trying to portray more of a sober appearance than in previous years. However, it is unlikely that voters have forgotten what happened when he was transport minister and how he was responsible for so many missteps. As previously pointed out, Mbalula has a history of running his mouth off. People are unlikely to have forgotten how he tweeted that he had 'Just landed in Ukraine', or that he had taken Prasa into administration with no legal authority to do so, or that he used such vulgar language when talking to taxi drivers that the SA Council of Churches was moved to to make a public comment. Or that he was found by a Public Protector to have received a paid holiday from a sporting goods chain while minister of sport. These are the consequences of his long history in the public eye. It is unlikely that he can change the way the public views him. While it would be entirely rational to assume that ANC delegates would have the 2029 elections in mind when they vote for the position of ANC leader, history shows that sometimes internal dynamics are more important. And the ANC appears to have done virtually nothing to win back votes since the polls last year. This suggests that the electability of candidates will not be the most important factor in the ANC's leadership election. DM
