Latest news with #VallyPadayachee
IOL News
03-08-2025
- Business
- IOL News
SA on the brink of ‘energy poverty', increases of 600% in recent years says expert
The alarming rise in electricity prices in South Africa in recent years is unsustainable and disproportionate to many citizens' income levels. Image: Freepik THE alarming rise in electricity prices in South Africa in recent years is unsustainable and disproportionate to many citizens' income levels. This is the view of energy expert, Professor Vally Padayachee, who was reflecting on the prices of electricity after Electricity and Energy Minister Dr Kgosientsho Ramokgopa promised big changes to electricity prices in the coming months in efforts to address what he described as unsustainable prices. On April 1, Eskom 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. Padayachee said that the rising cost of electricity is concerning as it impacts not only household budgets but also the overall economy. "Increases of over approximately 600% in recent years are unsustainable and disproportionate to many citizens' income levels. Electricity, a public good, should arguably be like water, a fundamental right, accessible and affordable for all South Africans. "For the average South African household, rising electricity costs have become a serious financial concern. Many families find themselves allocating a growing portion of their income to energy bills, which can lead to difficult choices between essential services such as food, education, and healthcare. This financial strain can cause stress and adversely affect family life," he stated. 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 ✕ Ramokgopa has agreed and reiterating comments he made last week, said that South Africa was on the brink of 'energy poverty'. Speaking amid the ANC National Executive Committee's meeting in Gauteng Ramokgopa said: 'Electricity is unaffordable. We cannot continue along this tariff path. We are getting into a situation here in the country with new dimensions of energy poverty. There are households there, as I speak to you, that will not be able to afford the cost of households are being forced to make choices between a loaf of bread and buying prepaid electricity units,' he said. To curb the effects of energy poverty, Padayachee said: "The rising costs of electricity calls for urgent structural reforms to the energy pricing model in South Africa. Policymakers must explore ways to stabilise prices for households and reduce the burden on vulnerable populations. There must be a concerted effort towards transitioning to a sustainable energy future that emphasises renewable energy sources. "By investing in sustainable energy technologies, the government can work towards reducing reliance on expensive fossil fuels, ultimately lowering electricity costs over the long term." Economist Dawie Roodt stated that electricity prices in South Africa are now among the highest in the world, making the country unattractive as an investment destination, which is having a detrimental impact on the economy. 'There was a time about 20 to 25 years ago when our electricity was among the cheapest in the world, but that is no longer the case; now, it is among the highest in the world,' he said. He stated that due to years of mismanagement, lack of investment, and outstanding debt from local consumers, Eskom is carrying a significant amount of debt. Leader of the eThekwini Ratepayers and Residents Association (ERRA), Ish Prahladh, echoed these concerns, stating, 'It is very true that the electricity tariff increases for ratepayers, residents, and businesses are definitely not sustainable. 'This overburdens all households and has a significant impact on businesses as well. There is a large population that is unemployed, and this is causing further unemployment because many small to medium-sized businesses are likely to shut down due to rising costs. 'High tariffs lead to increased living costs, including food prices, and have a ripple effect on the economy. Therefore, alternative solutions must be explored, such as solar power, to become more affordable for poorer and middle-income households. Solar power should be considered in a way that allows the government to subsidise it for all communities, making it more sustainable and helping to reduce electricity costs,' he said.
eNCA
25-06-2025
- Business
- eNCA
Unregistered solar users face disconnection
JOHANNESBURG - Eskom is intensifying its push to have households with rooftop solar systems register. READ: Eskom lightens the solar load Those who don't register grid-tied solar power installations face fines or having their systems disconnected. It's part of the small-scale embedded generation programme or SSEG. Power and energy expert, Professor Vally Padayachee explained the system to eNCA.
IOL News
11-06-2025
- Business
- IOL News
Eskom assures stability amid rising demand and winter challenges
Eskom in a statement on Friday assured the country that the system remains stable despite being constrained on the back of rising demand as a result of inclement weather conditions Eskom in a statement on Friday assured the country that the system remains stable despite being constrained on the back of rising demand as a result of inclement weather conditions. The State-owned power utility said it would add 2 550 MW to the grid on Monday, 9 June, and thus rotational load shedding will not be necessary if unplanned outages stay below 13 000 MW. An energy expert believes that managing Unplanned Capacity Loss Factor (UCLF) will be key to managing high demand during the winter months. Professor Vally Padayachee, energy expert and former Eskom generation executive manager, said that Eskom's assertion that the power system remains stable but constrained reflects the complex dynamics at play within our energy landscape. 'While it is commendable that we are witnessing a certain degree of stability, this is juxtaposed against the persistent challenges linked to generation capacity and maintenance backlogs.' Padayachee added that the planned addition of 2,550 MW to the grid is promising and exemplifies Eskom's proactive approach to mitigating demand pressures, particularly ahead of the anticipated cold spell. 'However, it is essential to recognize that this augmentation of capacity is necessary to support an increasingly demanding grid, especially during peak usage times. The fact that Eskom has been able to reduce the Planned Capability Loss Factor (PCLF) to approximately 4,035 MW, down from 4,883 MW, suggests ongoing improvements in operational efficiency and maintenance practices.' Padayachee said that nonetheless, sustained vigilance is critical, given that we still face high unplanned capacity loss. 'The current Unplanned Capacity Loss Factor (UCLF) of 28.93% is concerning. This metric underscores the need for further attention and resources to address the underlying issues causing these unplanned outages. Notably, the delay in returning Medupi Unit 4 to service exhibits how long-term maintenance projects can significantly impact reliability. As the unit is anticipated to return within June 2025, its reintegration will be pivotal for improving overall generation capacity.' Padayachee added that the Energy Availability Factor (EAF) levels, fluctuating around 60% to 64%, indicate a gradual recovery; however, they remain below optimal performance levels. 'A year-to-date average EAF of 57.85%, which is down from 60.67% in the same period last year, further illustrates the detrimental effects of increased planned maintenance—now at 12.76% of total generation capacity.' Padayachee said that looking forward, while the winter outlook does not currently indicate an imminent need for load shedding if unplanned outages remain controlled, we must adopt a proactive stance. 'However, if the UCLF increases to beyond 15,000 MW, we could see a return to load shedding, hopefully at lower levels. It is vital that Eskom and the broader energy ecosystem focus on sustainable practices, enhancing generation reliability, and strategic maintenance scheduling. Reducing illegal connections and energy theft is equally crucial, as these factors can lead to overloads and wider outages, further straining our grid.' Padayachee added that as we navigate these winter months, he encourages all stakeholders—government, industry players, and consumers alike—to adopt a collaborative approach in managing energy consumption and ensuring efficient utilization of resources. 'Public education campaigns around the responsible use of electricity and the importance of adhering to legal electricity procurement will help alleviate some of the pressures on the grid. While Eskom's immediate measures are steps in the right direction, the outlook necessitates continual improvement in operational efficiency, robust maintenance strategies, and active public engagement to foster a more resilient power sector.' BUSINESS REPORT
The Citizen
06-05-2025
- Business
- The Citizen
Eskom on 'right trajectory' to provide stable electricity
Minister of Electricity Kgosientsho Ramokgopa said Eskom is transitioning from 'ending load shedding' to 'energy saving'. As South Africans wait to see if the lights stay on during winter, a former Eskom executive believes the power utility is on the right trajectory to provide stable electricity through the cold winter months. On Monday, Eskom said it will have more than 2.5gw of power this winter and could avoid load shedding altogether if unplanned breakdowns remain below 13gw. Transitioning During the media briefing, Minister of Electricity Kgosientsho Ramokgopa said Eskom is transitioning from 'ending load shedding' to 'energy saving'. 'That's very important, and that's why when we have periodic episodes of load shedding, it's a significant setback on our ambition to ensure that we are able to sustain that transition.' ALSO READ: Eskom winter outlook: Here's how many days of load shedding to expect in SA Eskom on right track Former Eskom executive manager Professor Vally Padayachee said this is the first time that Ramokgopa has made a statement about transitioning from load shedding. 'He's indicating that they are now ready to end load shedding eventually within the next short while, and I'm not sure how that short while pans out. 'I'm confident that Eskom is on the right trajectory, but we must just be careful, there is a risk and they are not out of the woods yet, we will still probably have load shedding as Eskom alluded,' Padayachee said. Former Eskom executive manager Prof. Vally Padayachee says he believes the power utility is on the right trajectory to provide stable electricity through the winter period. Earlier today, Electricity Minister Dr Kgosientsho Ramokgopa announced an expected boost of 2 500 megawatts… — Newzroom Afrika (@Newzroom405) May 5, 2025 Winter load shedding During the briefing, Eskom CEO Dan Marokane said significant improvements have been made since the Summer 2024/25 outlook. Marokane said Eskom does not expect load shedding this winter if unplanned outages remain below 13gw. 'If outages increase to 15gw, load shedding would be limited to a maximum of 21 days out of 153 days at Stage 2 – an improvement over the prior winter's worst-case prediction of Stage 5 load shedding.' 'lethal combination' In late January and February, South Africa experienced different levels of power cuts from stage 3 to stage 6, following nearly ten months of uninterrupted electricity supply. Marokane acknowledged the five incidents of load shedding, which occurred amid a 'lethal combination' of multiple unit trips overlapping with delays in bringing some units back online Eskom board chairperson Mteto Nyati said the board and management have spent time trying to understand the root causes of these failures and found that they were largely due to 'people-related' issues that required holding staff accountable and instilling a high-performance culture. 'We have not been proud of how we performed.' Diesel savings Eskom Group Executive for Generation Bheki Nxumalo said the parastatal also produced more energy in the 2025 financial year than in the previous two. 'We continue to make bold decisions with the future in mind: to build a stronger, more reliable power system for the country. 'We have continued to maintain high levels of planned maintenance as part of efforts to improve fleet reliability in preparation for the high winter demand, while also meeting environmental license conditions and regulatory requirements,' said Nxumalo. The value of diesel consumption also declined by 45%, resulting in savings of R16 billion. Diesel is mainly used to power open-cycle gas turbines (OGCT) to help the utility meet the peak demand periods. NOW READ: What is an Aphelion phenomenon? It's chilly in Gauteng but not a doomsday cold front
