Latest news with #EnergyActionPlan
IOL News
12-08-2025
- Business
- IOL News
SALGA and business groups differing views over Nersa's electricity trading licences
The National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities has sparked fierce debate with Salga and Eskom raising concerns. Image: Supplied A sharp divide has emerged between local government and business groups over the National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities. The South African Local Government Association (SALGA) said it had deep concern over NERSA issuing licences before finalising trading rules, warning that the move poses a serious threat to the financial sustainability, constitutional mandate, and operational integrity of municipal electricity distribution systems. SALGA, which represents municipalities, said finalised rules were essential to ensure 'clear definitions of customer eligibility and trader rights; protection of redistributive and cross-subsidisation obligations embedded in municipal tariffs; [and] safeguards against predatory competition in licensed municipal areas of supply.' Among its key concerns is the potential erosion of municipal revenue, which funds not only electricity services but roads, waste management, and water supply. SALGA said, 'allowing traders to target only high-value, reliable customers would leave municipalities with a disproportionate share of defaulting customers.' SALGA also warned of 'infringement of constitutional mandates' and called for Nersa to suspend the approval of further trading licences until a transparent and balanced regulatory framework is finalised and consulted upon. However Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged Eskom to drop its legal challenges to the same licences. The organisations argue that litigation is undermining energy reform and delaying much-needed investment in new generation capacity. 'Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution,' said BLSA chief executive Busi Mavuso. 'South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid, now. For Eskom to spend public money on litigation designed to frustrate the very reforms government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.' BUSA chief executive Khulekani Mathe said: 'Our goal as a nation must be a reliable and affordable supply of electricity for every South African. This requires collaboration, not litigation.' He called for Eskom to align its actions with the President's Energy Action Plan and to support 'a vibrant and competitive market that encourages much-needed additional investment… key to longer-term energy security and making South Africa globally competitive.' While SALGA warns of 'destabilising the sector' without firm rules, BLSA and BUSA insist that delaying private entry into the market will slow progress towards ending load-shedding and reviving the economy. THE MERCURY
IOL News
07-08-2025
- Health
- IOL News
Lying idle at Durban's Wentworth Hospital is a batch of donated diesel generators
Health Minister Aaron Motsoaledi says electrical engineers have advised that consignment of diesel-powered generators received by Minister of Electricity Kgosientsho Ramokgopa (pictured) were not suitable for installation against existing electrical reticulation as they will immediately fail at commissioning. Image: File LOW VOLTAGE More than 300 low-voltage diesel generators shipped from China are currently stored unused at a Durban hospital in KwaZulu-Natal, pending distribution to provinces. This was revealed by Health Minister Aaron Motsoaledi when he was responding to parliamentary questions from Rise Mzansi leader and MP Songezo Zibi, who brought up concerns regarding the KwaZulu-Natal Department of Health seeking additional funding to procure new generators while the donated ones were disused. The donated generators were part of the consignment received by Electricity and Energy Minister Kgosientsho Ramokgopa in November 2023 and August 2024 after they arrived at the Durban harbour. They were meant to be used to alleviate the impact of load shedding in the delivery of services in clinics, schools and courts whilst government continued to implement the Energy Action Plan. Zibi noted that the KwaZulu-Natal Department of Health had received a donation of about 100 generators from the People's Republic of China to assist clinics and hospitals during inclement weather and loadshedding. 'The generators remain unused and stored at the Wentworth Hospital in Durban, amidst raising concerns about financial mismanagement,' he said. Zibi also said the provincial department continued to seek additional funding to purchase new generators while the donated generators lay idle. 'What are the reasons that the donated generators have not been distributed and/or or utilised and is their total estimated monetary value,' he asked. In his written response Motsoaledi said the KZN Department of Health did not receive a donation of 100 generators of varying capacities from the People's Republic of China, but only 22 generators. He said the donation was facilitated through a deal between the Ministry of the Department of Electricity and Energy and the People's Republic of China, with a total of 328 generators earmarked for the health sector inclusive of all provinces in the country. 'The reason why these generators were stored at Wentworth Hospital in KZN, was for convenience as the point of entry was the Durban harbour, and the hospital provided the needed space for storage.' Motsoaledi also said the generators have not been distributed to other provinces due to the size of generators donated from China, which was less than 6 KiloVolt-Amperes (KVA). This was despite the minimum KVA requirement for a small size clinic being 20 KVA. 'The electrical engineers advised that these generators were not suitable for installation against existing electrical reticulation as they will immediately fail at commissioning,' he said. Motsoaledi said the generators allocated to the health sector were estimated at R3 million out of a total value of approximately R160 million for the generators donated by People's Republic of China for all sectors of government. He confirmed that KZN purchased 494 generators to the tune of R297.8m over the past three years. 'The purchasing of generators by the KZN Department of Health was necessary to respond to backup power needs at health facilities, especially with the ongoing loadshedding and load reduction measures being implemented by Eskom. 'The unused stock is meant to be used by other provinces, as the KZN Department of Health stock is not part of the generators stored at Wentworth Hospital,' he said, adding that KZNl allocated their allotment of 22 generators from the donation to their disaster management unit. Motsoaledi stated that while the powers to institute any consequence management in the province rested with the Premier and the Heads of Department, none has taken place because no official ordered the specific generators. 'They were donated in kind,' he said. 'The national Department of Health is liaising with The Department of Electricity and Energy to facilitate a potential reallocation of the generators to a sector where they will be fit for purpose,' said Motsoaledi.
IOL News
06-08-2025
- Health
- IOL News
Donated diesel generators lie idle at Wentworth Hospital
Health Minister Aaron Motsoaledi says electrical engineers have advised that consignment of diesel-powered generators received by Minister of Electricity Kgosientsho Ramokgopa (pictured) were not suitable for installation against existing electrical reticulation as they will immediately fail at commissioning. Image: File More than 300 low-voltage diesel generators shipped from China are currently stored unused at a Durban hospital in KwaZulu-Natal, pending distribution to provinces. This was revealed by Health Minister Aaron Motsoaledi when he was responding to parliamentary questions from Rise Mzansi leader and MP Songezo Zibi, who brought up concerns regarding the KwaZulu-Natal Department of Health seeking additional funding to procure new generators while the donated ones were disused. The donated generators were part of the consignment received by Electricity and Energy Minister Kgosientsho Ramokgopa in November 2023 and August 2024 after they arrived at the Durban harbour. They were meant to be used to alleviate the impacts of load shedding in the delivery of services in clinics, schools and courts whilst government continues to implement the Energy Action Plan. Zibi noted that the KwaZulu-Natal Department of Health had received a donation of about 100 generators from the People's Republic of China to assist clinics and hospitals during inclement weather and loadshedding. 'The generators remain unused and stored at the Wentworth Hospital in Durban and noting that, amidst raising concerns about financial mismanagement,' he said. Zibi also said the provincial department continued to seek additional funding to purchase new generators while the donated generators lay idle. 'What are the reasons that the donated generators have not been distributed and/or or utilised and is their total estimated monetary value,' he asked. In his written response Motsoaledi said the KwaZulu-Natal Department of Health did not receive a donation of 100 generators of varying capacities from the People's Republic of China, but only 22 generators. He said the donation was facilitated through a deal between the Ministry of the Department of Electricity and Energy and the People's Republic of China, with a total of 328 generators earmarked for the health sector inclusive of all provinces in the country. 'The reason why these generators were stored at Wentworth Hospital in KZN, was for convenience as the point of entry was the Durban harbour and the hospital provided the needed space for storage.' Motsoaledi also said the generators have not been distributed to other provinces due to the size of generators donated from China, which was less than 6 KiloVolt-Amperes (KVA). This was despite the minimum KVA requirement for a small size clinic being 20 KVA. 'The electrical engineers advised that these generators were not suitable for installation against existing electrical reticulation as they will immediately fail at commissioning,' he said. Motsoaledi said the generators allocated to the health sector were estimated at R3,060,000 out of a total value of approximately R160 million for the generators donated by People's Republic of China for all sectors of government. He confirmed that KwaZulu-Natal purchased 494 generators to the tune of R297,870,199 over the past three years. 'The purchasing of generators by the KZN Department of Health was necessary to respond to backup power needs at health facilities, especially with the ongoing loadshedding and load reduction measures being implemented by Eskom. 'The unused stock is meant to be used by other provinces, as the KZN Department of Health stock is not part of the generators stored at Wentworth Hospital,' he said, adding that KwaZulu-Natal allocated their allotment of 22 generators from the donation to their disaster management unit. Motsoaledi stated that while the powers to institute any consequence management in the province rested with the Premier and the Heads of Department, none has taken place because no official ordered the specific generators. 'They were donated in kind,' he said. 'The national Department of Health is liaising with The Department of Electricity and Energy to facilitate a potential reallocation of the generators to a sector where they will be fit for purpose,' said Motsoaledi.
Scoop
28-05-2025
- Business
- Scoop
Businesses Struggling To Keep Doors Open As Energy Costs Surge
Press Release – Auckland Business Chamber New Zealand businesses are suffering under the yoke of rising energy costs, with many reluctant to speak out for fear of commercial retaliation from major energy suppliers. That's the main take-out from a new survey carried out by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF). Survey responses were garnered mainly from SMEs in the Upper North Island, with manufacturing the most heavily represented sector. Chamber CEO Simon Bridges says the survey findings show that energy costs are right at the top of the list of concerns for businesses, in what is a very challenging operating environment. 'Nearly 90% of respondents say that energy costs have increased in the past year, and just under 50% describe those costs as highly concerning. When energy costs combine with the pressure from weak market demand, inflation and increased compliance costs, the result is that many businesses are struggling to keep their doors open.' Mr Bridges says one unexpected, and troubling, insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs, for fear of commercial repercussions. 'Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeorpardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market. Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying. 'It's high time the Government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector.' NIF Executive Director Barney Irvine says the survey results also underline the drag that energy costs are placing on New Zealand's growth and productivity, and on people's livelihoods. 'As a response to rising energy costs, 52% of business surveyed say they have increased the prices they charge to customers; a quarter say they cut back production; the same proportion say they have laid off staff; and just under 20% have cancelled or deferred investment. Unnecessarily high energy costs impact on everyone.' Businesses are looking to the Government for leadership, he adds. 'Over three-quarters of survey respondents believe that the Government should treat addressing energy costs as a high or very high priority, and they're absolutely right. 'The Government has a good sense of what needs to be done to turn the performance of the sector around for the long-term; what's needed now is swift, decisive action.' In particular, the Chamber and NIF want to see the ten-point Energy Action Plan they launched in February this year – which focused on strengthening sector stewardship, improving resilience, and increasing generation and competition – incorporated into government policy. Key findings from the survey include: Nearly 90% of respondents say that energy costs have increased over the past year, with over 40% reporting that the increase has been large or very large Just under 50% of respondents describe energy costs as highly concerning (i.e., a rating of 8-10 out of 10), similar to the level in concern in relation to market demand, inflationary pressure and compliance costs Over 60%% report an impact on their business as a result of rising costs, with 34% describing the impact has as large or very large As a response to rising costs, 52% of respondents say they have increased their own prices, while 25% report having cut back production, and the same proportion report having laid off staff. Just under 20% have cancelled or deferred investment Over 80% expect prices to increase again in the year ahead
Scoop
28-05-2025
- Business
- Scoop
Businesses Struggling To Keep Doors Open As Energy Costs Surge
New Zealand businesses are suffering under the yoke of rising energy costs, with many reluctant to speak out for fear of commercial retaliation from major energy suppliers. That's the main take-out from a new survey carried out by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF). Survey responses were garnered mainly from SMEs in the Upper North Island, with manufacturing the most heavily represented sector. Chamber CEO Simon Bridges says the survey findings show that energy costs are right at the top of the list of concerns for businesses, in what is a very challenging operating environment. 'Nearly 90% of respondents say that energy costs have increased in the past year, and just under 50% describe those costs as highly concerning. When energy costs combine with the pressure from weak market demand, inflation and increased compliance costs, the result is that many businesses are struggling to keep their doors open.' Mr Bridges says one unexpected, and troubling, insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs, for fear of commercial repercussions. 'Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeorpardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market. Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying. 'It's high time the Government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector.' NIF Executive Director Barney Irvine says the survey results also underline the drag that energy costs are placing on New Zealand's growth and productivity, and on people's livelihoods. 'As a response to rising energy costs, 52% of business surveyed say they have increased the prices they charge to customers; a quarter say they cut back production; the same proportion say they have laid off staff; and just under 20% have cancelled or deferred investment. Unnecessarily high energy costs impact on everyone.' Businesses are looking to the Government for leadership, he adds. 'Over three-quarters of survey respondents believe that the Government should treat addressing energy costs as a high or very high priority, and they're absolutely right. 'The Government has a good sense of what needs to be done to turn the performance of the sector around for the long-term; what's needed now is swift, decisive action.' In particular, the Chamber and NIF want to see the ten-point Energy Action Plan they launched in February this year – which focused on strengthening sector stewardship, improving resilience, and increasing generation and competition – incorporated into government policy. Key findings from the survey include: Nearly 90% of respondents say that energy costs have increased over the past year, with over 40% reporting that the increase has been large or very large Just under 50% of respondents describe energy costs as highly concerning (i.e., a rating of 8-10 out of 10), similar to the level in concern in relation to market demand, inflationary pressure and compliance costs Over 60%% report an impact on their business as a result of rising costs, with 34% describing the impact has as large or very large As a response to rising costs, 52% of respondents say they have increased their own prices, while 25% report having cut back production, and the same proportion report having laid off staff. Just under 20% have cancelled or deferred investment Over 80% expect prices to increase again in the year ahead
