Latest news with #Eskom
IOL News
3 hours ago
- Business
- IOL News
Brian Molefe's ongoing legal battle over R32m Eskom pension fund payout
MK Party MP and former Eskom chief executive Brian Molefe. Image: Jacques Naude / Independent Newspapers Former Eskom chief executive Brian Molefe will continue his fight against the power utility's pension and provident fund over the millions of rand he received in a payout in 2017. In 2018, the DA, trade union Solidarity, and the EFF obtained a Gauteng High Court, Pretoria, order reviewing and setting aside Molefe's reappointment as Eskom boss as well as the proposal granting him early retirement. At the time, the full bench of the high court – Judges Keoagile Matojane, Hans Fabricius, and Segopotje Mphahlele – also declared any payment or sum of money received by Molefe under any purported agreement between him and Eskom invalid and ordered him to repay the amounts within 10 days. Molefe unsuccessfully applied for leave to appeal to both the Supreme Court of Appeal and the Constitutional Court. 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 In their scathing ruling, the judges found Eskom's decision to waive penalties and buy Molefe an extra 13 years of service totalling R30.1 million after only 15 months' service at the age of 50 stretched incredulity and was unlawful for want of compliance with the Eskom Pension and Provident Fund's (EPPF's) rules. 'What is most disturbing is the total lack of dignity and shame by people in leadership positions who abuse public funds with naked greed for their benefit without a moment's consideration of the circumstances of fellow citizens who live in absolute squalor throughout the country with no basic services,' the high court reasoned. In July 2022, the EPPF was later directed by Judge Norman Davis to repay Eskom the R32.3m payout, including employer contributions, Molefe's monthly pension contributions, and his performance bonus pension contributions. Molefe was ordered to repay the fund about R10m together with mora interest, which is charged when payment is not made. The former Transnet chief executive has maintained that based on his calculations, the net amount that he has to repay is just less than R1.5m. The EPPF then became entitled to set-off against the amount due by Molefe against the net balance of the Transnet Retirement Fund lump sum he received upon receipt of a tax directive from the SA Revenue Service (Sars) on the tax payable on the amount. Molefe appealed the July 2022 judgment, and on July 11, 2025, another full bench of the high court – Judges Ronel Tolmay, Mmonoa Teffo and Rochelle Francis-Subbiah – upheld his challenge. Parts of Judge Davis' order were set aside and substituted. 'The matter is referred to oral evidence to determine the amount payable by the appellant (Molefe) to the first respondent (EPPF), before a different judge. 'The first respondent must discover all documents relating to the calculation and flow of money as well as all documents it intends to use during the leading of evidence within 15 days of this order,' the court ruled. Additionally, according to the judgment, Molefe must discover all documents relating to the calculation and flow of money and all documents he intends to use during the leading of evidence within 15 days of the filing of his documents. The judges continued: 'The judges stated that actuaries may file supplementary reports after receiving the aforementioned documents, and must do so at least 45 days before the matter is heard.' Molefe did not respond to requests for comment on Tuesday.
The Citizen
7 hours ago
- Business
- The Citizen
A brighter future for South African steel?
Key drivers for steel include renewed public investment, an infrastructure-led recovery and rising private-sector activity in renewable energy and manufacturing. South Africa's steel sector stands at an inflection point. After years of stagnation and brutal trading conditions hampered by power outages, logistics bottlenecks and cheap imports, demand for steel is poised to recover. Public investment surge will fuel demand. National Treasury's 2025 budget earmarks over R1 trillion in infrastructure investment through to 2028, spanning transport, energy, water and sanitation. Additionally, the recently announced World Bank $1.5 billion loan is dedicated to upgrading transport and energy infrastructure. This loan addresses grid and logistics deficiencies that have historically constrained steel use. Additionally, the US$500 million World Bank guarantee is designed to direct private investment into electricity transmission, supporting Eskom's grid expansion and underpinning steel-intensive activity. These combined investments promise robust demand for steel, particularly rails, pylons, transformers and transmission infrastructure. ALSO READ: ArcelorMittal warns it might close without urgent solution to challenges SOE roll-out and renewables drive will increase uptake The SOE roll-out and renewables drive, which will increase steel uptake, has begun. The Eskom grid build-out, confirmed in June 2025, relates to 5 GW repowering projects and long-delayed transmission upgrades, and will hinge on local steel supply for pylons and infrastructure. The Transnet and South African National Roads Agency pipelines include rail and port expansions totalling R47 billion, further igniting demand for rails, sleepers and fastener components. The renewable energy boom requires extensive steel infrastructure—frames, towers, pylons—all expected to be sourced locally in line with industrial policy objectives. Resurgent private sector, manufacturing and mining is likely to result from renewed manufacturing activity. With stable power and logistics, sectors from auto to appliance manufacturing will increasingly show output recovery, translating into increased demand for flat and long steel products. Mining sector improvement is slowly gathering momentum. Coal and other mineral transport require steel-intensive conveyance and loading infrastructure—already increasing modestly, with potential growth ahead. ALSO READ: ArcelorMittal hauls Transnet to Competition Tribunal for market abuse Also growth in African steel demand African continental growth steel demand is also expanding. Africa's steel market reached approximately 39.5 million tonnes in 2024 and is projected to expand at ~3.1% CAGR through 2034. South Africa can leverage rising demand across manufacturing and construction markets continent-wide, especially under AfCFTA. Given the infrastructure investment pipeline, further steel-demand growth of 5–7% annually is realistic – outpacing GDP growth. Ultimately, we anticipate seeing a level of palpable demand not seen for some time. Improvements to local sourcing policies can ensure public and private projects use South African steel, reducing imports through localisation and designation, especially for SOEs and government departments and strengthening local steel capacity utilisation will have a solid effect. Stable order pipelines could grow substantially. SOEs alone could generate tens of billions annually in repeat steel demand, providing much-needed predictability and scale. Steel is the linchpin of multiple value chains, from transformers and rails to agricultural equipment. ALSO READ: Warning from industry that Steel Master Plan has stalled Robust demand will revitalise sectors and support thousands of jobs Robust steel demand revitalises sectors and supports thousands of jobs downstream, and consequently, a multiplier effect can be expected once policy supports local demand strongly. Importantly, reliance on imported steel introduces supply risk and volatility. A strong local industry ensures South Africa remains resilient amid global disruptions. The question is not whether steel demand will grow, but how effectively we ensure that this growth benefits domestic producers and fosters sustained industrial development. In the coming months, policymakers and industry leaders must align demand signals with supply capacity, thus creating a virtuous cycle of investment, production, and socio-economic returns. Steel isn't just a commodity; it is the concrete evidence of a nation building itself, bridge by bridge, pylon by pylon, job by job.
IOL News
8 hours ago
- Business
- IOL News
Electricity Minister Calls for Reduction in Rising Power Prices
Electricity and Energy Minister Kgosientsho Ramokgopa highlighted the detrimental effects of the rising electricity costs during a recent public address. Image: File Electricity Minister Dr. Kgosientsho Ramokgopa has called for urgent action to lower electricity prices, citing concerns that current rates are unsustainable and contributing to widespread energy poverty across South Africa. The minister's remarks come in the wake of a recent tariff increase that has sparked debate among consumers, policymakers, and industry experts. On April 1, Eskom, the country's primary electricity supplier, implemented a tariff increase of 12.74 percent. This hike followed approval from the energy regulator and represents one of the most significant price adjustments in recent years. While Eskom argues that the increase is necessary to cover rising operational costs and investments in infrastructure, many households and businesses are struggling to absorb the higher bills. Minister Ramokgopa highlighted the detrimental effects of the rising electricity costs during a recent public address. He emphasised that the current pricing structure places a heavy burden on South African families, reducing their disposable income and pushing many into energy poverty. The minister described the situation as unsustainable and stressed the need for measures to bring down the cost of electricity to more affordable levels. 'The price of electricity is dealing a serious blow to the disposable income of households,' Ramokgopa said. He urged stakeholders, including Eskom and regulators, to work collaboratively toward solutions that balance the financial health of the utility with the economic realities faced by consumers. 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 ✕ Energy poverty, defined as the inability of households to afford adequate energy for basic needs, has become a growing concern in South Africa. High electricity costs force many families to make difficult choices between powering their homes and meeting other essential expenses such as food and healthcare. The minister's comments underline the urgency of addressing these challenges to improve quality of life and economic stability. The government has acknowledged the complexity of the issue. Eskom's financial struggles, coupled with the need for investment in renewable energy and maintenance of aging infrastructure, complicate efforts to reduce prices. However, Ramokgopa reaffirmed the commitment of the Department of Electricity to exploring innovative approaches, including greater use of alternative energy sources and reforms in the energy sector. Consumer advocacy groups have welcomed the minister's statements but caution that concrete actions must follow words. Many argue that without clear plans to regulate tariff increases and support vulnerable households, electricity costs will continue to rise, deepening social inequality. The minister's call also comes amid broader discussions about South Africa's energy future. The country faces challenges related to supply reliability, infrastructure development, and transitioning to cleaner energy sources. Balancing these priorities while ensuring affordability remains a central concern for policymakers. As the electricity tariff increase takes effect, many South Africans are adjusting their budgets and energy usage in response. The government's stance on reducing prices offers hope, but the path ahead requires coordinated efforts from all parties involved. Minister Ramokgopa plans to engage with Eskom, regulators, and industry leaders in the coming weeks to discuss strategies for addressing the cost crisis. The focus will be on creating a sustainable energy system that supports economic growth while protecting consumers from excessive financial strain. For now, households affected by the price hike are urged to stay informed through official channels and explore available support programs.
IOL News
9 hours ago
- Business
- IOL News
Cost of energy is too high
We fully agree with Electricity and Energy Minister Kgosientsho Ramokgopa's clear and succinct statement to a television station: the cost of electricity in South Africa is "unsustainable" and is forcing many households into energy poverty. He elaborated further, explaining that the government was revising electricity tariffs. 'It's unaffordable,' Ramokgopa added. He summed up the situation by saying many poor people would rather buy bread than purchase electricity units. This is a sad reality faced by millions of South Africans every day. When those with a regular income complain about the cost of electricity, it is evident that the situation has spiralled out of control. We will not discuss the costs involved — the bottom line is that it is expensive. Before 2007, when Alec Erwin made his public declaration about the end of cheap electricity, protests like the recent one in Ekurhuleni were less common, as South Africa previously enjoyed some of the lowest electricity tariffs. Since then, an initial 18% increase has been followed by numerous additional hikes. At that time, price adjustments were necessary to fund infrastructure investments and accommodate a growing population. Consumers who can afford it have been investing in solar power to make their household manageable, but the government has proposed taxing households with solar energy systems. So, where do we begin to address the problem? According to the World Bank, Eskom has 66% more staff than needed to serve its customer base. The power utility has been under increasing pressure to address its overstaffing issues, implement measures to reduce personnel costs, improve efficiency, and ensure its long-term sustainability. We believe this could be a starting point for lowering electricity tariffs. We would prefer Eskom not to frequently approach the National Energy Regulator of South Africa asking for more and exorbitant tariff increases. Lastly, South Africa must accept that paying for electricity is the right thing to do. Nothing for free, unfortunately.
News24
10 hours ago
- Business
- News24
Court slaps Eskom with R1bn bill for Koeberg delays
Eskom has been ordered to pay around R1 billion to French nuclear reactor company Framatome over delays in the replacement of Koeberg's steam generators. The Western Cape High Court agreed with the findings of an adjudicator who investigated the delays two and a half years ago, ruling that Eskom was at fault for the work stoppage and had to pay for breaching its contract. 'There is no basis to set aside the decisions of the adjudicator which are valid and binding,' said acting Judge RT Williams. He ordered the power utility to pay Framatome €35 288 582 (about R728 million at current exchange rates) plus R256.6 million, for a total of R984.6 million. Eskom will likely have to pay well over R1 billion when it factors in interest and Framatome's legal fees. The dispute centres on the replacement of steam generators at Koeberg, South Africa's sole nuclear power station. Framatome had, in 2018, taken over the contract to supply and install replacement generators at the power plant's two reactor buildings from Areva NP. Eskom needed to replace the plant's six steam generators - three in each of its two units - to prolong its life by another 20 years. Eskom scheduled an outage for Koeberg's Unit 2 starting in January 2022 to replace its generators. But in March, it told Framatome it would not be continuing with the steam generator replacement and ordered it to stop work. Framatome told Eskom that the order to stop work amounted to a 'compensation event' under its contract – meaning it could claim for the disruption. Eskom's project manager agreed, but gave the compensation as nil – meaning Framatome would not be able to claw anything back. The nuclear company then referred the matter to an adjudicator as provided for in its contract with Eskom. READ | Eskom scrambles to save R5bn Koeberg project after generator is 'dropped' in China The adjudicator, advocate Peter Ramsden, had to rule whether the event did, indeed, amount to a compensation event. He had to say what, if anything, Eskom owed Framatome for the abrupt stoppage. On 15 December 2022, Ramsden ruled the work stoppage order was a compensation event. In March 2023 – a year after Eskom told Framatome to stop work – he fixed what Eskom owed at €35.2 million plus R256.6 million and interest. Eskom then took the order to court. It argued that adjudicator had taken too long to make a decision, that he had overstepped his authority, that this authority had lapsed, and that he had failed to give detailed reasons for his decision. Framatome, meanwhile, supported Ramsden's decision. In a ruling handed down last week, Williams dismissed every one of Eskom's objections, saying Ramsden had done nothing wrong. 'Eskom's challenge to the reasons provided by the adjudicator is clearly a distortion of the quantum decision and a stratagem to avoid having to comply with the adjudicator's decision,' he found. The steam generators in Unit 2 were eventually replaced during a long‑term outage that began in December 2023. The unit was synchronised to the grid again in December last year.
