Latest news with #KgosientshoRamokgopa
IOL News
a day 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
a day 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.
IOL News
2 days ago
- Business
- IOL News
Electricity costs are turning into a luxury for many South Africans, says Ramokgopa
Minister Kgosientsho Ramokgopa has vowed to tackle unaffordable electricity pricing, warning it is disproportionately affecting the country's most vulnerable communities. Image: Cape Argus Electricity and Energy Minister Kgosientsho Ramokgopa has issued a stark warning about the escalating cost of electricity in South Africa, labelling it 'unsustainable' and a significant contributor to the growing energy poverty affecting many households. In an interview with a TV broadcaster at the weekend, Ramokgopa said, 'We are revising the electricity pricing policy to address the issue of the cost of electricity. It's unaffordable.' His comments highlight the urgent need for reform as South Africans grapple with the financial strain of rising energy costs. 'I mean, it's dealing a major blow to the disposable income of households.' He said that for many families, the choice comes down to buying a loaf of bread or replenishing electricity units. 'The choice is easy. They are going to buy a loaf of bread,' he said. Ramokgopa reiterated the government's responsibility to intervene. 'The state has got a duty not to be retrenched, but to be at the forefront of the resolution of this preeminent problem,' he said. His comments come after the National Energy Regulator of South Africa's (Nersa) decision to approve a 12.74% electricity tariff increase for Eskom earlier this year. The increase was effective from April 1, 2025. The increase is part of a multi-year revenue determination process, which will also see tariffs rise by 5.36% in the 2026 and 2027 financial year and by 6.19% in 2027 and 2028. Nersa said the tariff hike aims to stabilise South Africa's energy supply by improving Eskom's financial position, which has been weakened by aging infrastructure, delayed maintenance, and ongoing load-shedding. However, the move has sparked criticism from civil society groups, business owners, and ordinary citizens who argue that consistent increases are adding pressure to an already stretched cost of living. Ramokgopa emphasised that electricity pricing reform is necessary, particularly for poor and rural communities. 'That is disproportionately affecting your peri-urban areas, villages, and, if you like, poor areas… and that's something that is receiving our attention,' he said. Meanwhile, residents of Tembisa have taken to the streets to protest high electricity costs and the new tariff hike introduced by the City of Ekurhuleni. Angry residents began gathering around midnight Sunday and vowed to shut down the township on Monday. Protesters blocked major roads with burning tires, rocks, debris, and even mobile toilets. 'The following routes are affected following yesterday's protest action in Tembisa - Link Road, Sam Molele Drive, Brian Mazibuko Drive, George Nyanga Drive, RTJ Namane Drive, and Jabu Mdunge Drive are still barricaded,' said Ekurhuleni Metropolitan Police Department (EMPD) spokesperson Katlego Mphahlele. Mphahlele said EMPD and South African Police Service (SAPS) officers remained on the scene Monday morning to monitor the situation. 'No participants have been reported thus far,' Mphahlele added. In an updated statement, the EMPD said, 'The situation is still volatile. All main roads are still barricaded with burning tires. They're throwing moving vehicles with stones. Please be cautious.' The protest comes after the recently approved tariffs by the metro, which include fixed monthly fees of under R109 for single-phase connections and more than R200 for three-phase connections. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
The Star
16-07-2025
- Business
- The Star
Eskom dismisses false claims of imminent load shedding in July
Siyabonga Sithole | Published 2 weeks ago Eskom has strongly rejected false claims circulating online about imminent stage 4 and stage 6 loadshedding from 6 July until 20 July with the power utility saying the country's power system remains stable with loadshedding suspended since 10pm 15 May 2025. " The Winter Outlook, published on 5 May 2025, covering the period ending 31 August 2025, remains valid. It indicates that loadshedding will not be necessary if unplanned outages stay below 13 000MW. If outages rise to 15 000MW, loadshedding would be limited to a maximum of 21 days out of 153 days and restricted to Stage 2. There are no planned outages of this scale. Misinformation causes unnecessary alarm. Stay informed—trust only official Eskom updates on our official platforms," the power utility said. This past week, electricity and energy minister Kgosientsho Ramokgopa said municipalities with a combined debt of over R100 billion have not been able to reduce the amounts they owe to Eskom. The minister added that the ongoing challenges could result in the total collapse of the South African electricity complex. The minister described Eskom's challenge of supplying electricity but being unable to collect revenue as an 'existential problem'. 'They are spending money they must collect from the bulk consumer, and where they are reticulating. They are finding it difficult to collect, so they're unable to reinvest back into their asset base. It's going to result in, if not managed, a total collapse of the electricity complex in the country," Ramokgopa said. On Friday, Eskom revealed that despite the high unplanned outages and severe weather conditions in parts of South Africa, the available generation capacity was enough to meet peak demand. The power utility also revealed that for the week of 20 to 26 June 2025, unplanned outages averaged 14 696MW, exceeding last year's figure by 2 815MW and the base case estimate of 13 000MW by 1 696MW. It said the increase was largely due to Medupi Unit 4, which has been offline since August 2021 and was scheduled to return on 30 May 2025. The delay in its return was factored into the unplanned outage calculations from 1 June 2025, adding 800MW. Year-to-date, average unplanned outages stand at 14 031MW. [email protected]
Daily Maverick
16-07-2025
- Climate
- Daily Maverick
Joburg power crisis — almost 100,000 reported outages in 9 months, 5,126 very serious
Africa's powerhouse city is going back to the Dark Ages after decades of post-apartheid electrification gains. A Johannesburg power data investigation by Daily Maverick has found a total of 97,715 reported power outages in nine months – with more than 5,126 serious enough to take out entire suburbs at once. This is the first independent attempt to put a number on the scale of Johannesburg's power crisis placing South Africa's economic powerhouse at risk. We began tabulating quarterly reports from City Power from July 2024 to the end of March 2025. The key finding: serious high-voltage and medium-voltage outages are getting worse as the grid reaches its end of life. As we reported the impact of outages on people's lives, a few trends became clear: citizens and residents are turning to old forms of energy such as paraffin and petrol because solar is still too expensive for most. Business margins of the vital small and medium-sized hustle businesses so important to national growth are seeing their margins chopped because they must buy expensive inverters and generators to keep going. Many are shutting shop, laying off people or not expanding because they can't afford to hire more staff even where there is demand. Kabelo, a resident and a student at The Finishing College in Braamfontein who runs a business in Vlakfontein, said: 'The power outages are very bad, hey, because literally every time it starts raining, or it rains, or it gets a little windy, the lights go. They're gone for days. It's not a few hours – it's four to six days at a time. Food rots and there's no water to bathe. It's stressful for everybody. Most houses here have gas stoves, or primer stoves that use paraffin, and others light a fire to boil water to bathe or to cook. It's really hard. Imagine getting up in the morning to go and look for wood for a fire. As a student, it's bad, because you have to do schoolwork. 'Without WiFi the (mobile phone) towers go down and the network is bad. I can't complete my assignments, so I have to do everything there in Braamfontein, and catch late transport back home again.' This city-level energy crisis emerges as Electricity Minister Kgosientsho Ramokgopa finally gets a grip on national load shedding. The impact of the city's outages is significant because Johannesburg is still responsible for 16% of national GDP. The chart shows that from July 2024 to the end of March 2025 there were 97,715 reported outages – the absolute total may be lower because some might be reported more than once. Even half that number would be cripplingly high. Daily Maverick added a second level of data extraction from municipal distributor City Power's social media posts and found that from December 2024 to the end of February 2025 there were 5,126 outages serious enough for the utility to report publicly. It can't report all outages because there are too many. The mass of outages are so-called low-voltage outages and affect individual homes or a single street or a few properties. The medium-voltage outages are increasing: these affect an entire suburb or even many suburbs at once. These are caused by faults in larger powerlines or mini substations, distributors or transformer substations that supply 20 to 30 households or more. These are now an everyday standard across Johannesburg and are disempowering residents from the north to the south and east to west of the city. The age of the grid and the general decline are clear when you look at how outages are spread fairly evenly across the different distributing centres: Alexandra, Hursthill, Inner City, Lenasia, Midrand, Randburg, Reuven and Roodepoort. Soweto and other smaller parts of Johannesburg are serviced by Eskom and experience as many outages. As the utility – which is R15-billion in overdraft carried by the City, with many more billions in debt – runs out of cash, it can't hold stock and must buy on demand. This means outages last longer. South Africa's leading energy expert, Chris Yelland of EE Publishers, said municipal outages are getting longer. '(The outages) are exceptionally high by global standards,' he said. As we hit the city to report, many people said that multi-day or full-day outages are common now. 'City Power is particularly hard hit because it's in a dire financial state. If you don't have money, you can't carry spares.' Yelland said suppliers hesitated to do business with Johannesburg's electricity utility because it didn't pay efficiently. He said City Power was extending terms to 30, 60, 90 or even 120 days' credit and now suppliers wanted bank guarantees first. All of this extended outage times. 'We're talking about mini-transformers, cables, switch-gear, mini substations, electricity metering equipment…' The small and medium-sized suppliers couldn't fund supplies on 120-day credit lines. 'It's on the verge of a tipping point,' said Yelland who explained that because municipalities make up 50% of Eskom's sales, their non-payments were existential. Because people can't afford their bills, debt owed by municipalities to Eskom is growing at R3-billion a month and has now overshot a total of R100-billion. This in turn threatens Eskom's viability, Ramokgopa said when he announced a deal for City Power to pay off old debt owed to Eskom over four years. City Power also owes Eskom R3.2-billion, according to a recent settlement mediated by the minister, which will be paid off over four years. City Power: Soaring outages are not a crisis – yet Question: The Q3 report from City Power shows that in three months there were 29,084 low-voltage outages, 1,335 medium-voltage outages and 86 high-voltage outages between January and March 2025. This builds on a picture of massive outages across the city that are largely unrecognised in the public discourse. Would you classify this as a crisis? If not, could you explain why not? Answer: The figures reflect significant pressure on the electricity network. However, City Power does not classify the situation as a crisis. This is because a single outage may affect multiple customers who each log the fault separately, and sometimes repeatedly. In line with Nersa regulations, each logged call must be reported individually, even if it relates to the same high number of outage calls results from a range of factors, including consumer-related faults, equipment failures, overloads and incidents caused by third parties. Ageing infrastructure – especially in areas like Roodepoort, Randburg, Hursthill, the Inner City and Reuven – also contributes to system failures. While City Power prioritises replacing old infrastructure with advanced technology during repairs, progress is constrained by a R40-billion infrastructure backlog and limited funding (for example, only R1.2-billion allocated last year).Severe weather at the start of the year compounded the problem. Heavy rain, flooding and uprooted trees caused widespread damage, especially to underground cables. Moisture intrusion led to insulation failures and hampered testing and repair efforts. Vandalism of mini substations made things worse under these conditions. For example, in Roodepoort, a mini substation exploded after water damage and had to be replaced. Q: Has City Power undertaken impact studies on how this affects residents and businesses? A: Yes. City Power conducts regular service-level impact assessments aligned with the Joburg IDP. These inform initiatives like Energy Relief Packages and the Just Energy Transition Plan. Our 2025 Customer Satisfaction Baseline Survey confirmed a link between outages and increased household spending on alternative energy. We also track plant outages and infrastructure performance daily and conduct impact assessments to guide future investment. Q: Our reporting shows that communities across geographic and economic lines are turning to costly and risky alternatives like paraffin and generators. What's your view? A: We recognise the safety and cost concerns associated with these alternatives. They are neither ideal nor sustainable. City Power is working to reduce this dependence by expanding embedded generation, managing demand and rolling out smart meters under our Just Energy Transition Strategy. Q: Given the city's high consultancy spend (as reported in News24), what does the medium-term picture look like? A: The consultancy spend supports the need for specialised skills to modernise Johannesburg's energy system. The medium-term outlook includes stabilising the grid through capital investment, digitalisation of asset management and integrating independent power producers. These efforts are essential, not superficial. Q: Is City Power struggling to access spare parts due to high levels of debt? A: Nonpayment for electricity impacts our ability to fund infrastructure and maintain stock of spares. While we've experienced procurement delays, improved supply chain controls and vendor payment acceleration have helped. We're also seeing positive results from better meter reading and audit systems. Q: A Daily Maverick count based on City Power's social media suggests far fewer outages than in your reports. Why the discrepancy? A: Our social media only reports major high-voltage and medium-voltage outages for public awareness. Most outages (low voltage) are recorded internally via our Outage Management System, SCADA, and call centre logs. Daily internal reports track all MV outages across our Service Delivery Centres. Real-time updates are also shared via WhatsApp groups, ward councillors and social media, but these represent only a portion of total outages. DM This investigation was produced with the support of the SA | AJP, an initiative of the Henry Nxumalo Foundation funded by the European Union. This article does not necessarily reflect the views of the European Union.
