President Cyril Ramaphosa has approved a Memorandum of Understanding (MoU) entered into by Minister of Public Enterprises Pravin Gordhan and Minister of Electricity Kgosientsho Ramokgopa to clarify their responsibilities regarding Eskom and the resolution of the electricity crisis.
The MoU establishes a basis for a collaborative approach between the ministers in exercising their powers and functions.
“While significant progress has been made in reducing the severity of load-shedding, much work still needs to be done to guarantee a secure supply of electricity. The collaborative approach outlined in the Memorandum of Understanding will further strengthen Eskom’s efforts to resolve the electricity crisis,” Ramaphosa said in a statement on Friday.
The MoU outlines the roles and responsibilities of the minister of electricity as follows:
• Focus full time on all aspects of the electricity crisis and the work of the National Energy Crisis Committee.
• Exercise authority over the Eskom Board and management to end load-shedding and implement the Energy Action Plan without delay.
• Improve generation capacity and the purchase of additional capacity.
• Oversee implementation of the Eskom Generation Recovery Plan.
• Ensure the generation fleet performs optimally, leading to security of supply and a low level of load-shedding.
• Deal with transmission matters, including the issuing of Requests for Proposals and/or Requests for Information for financing of new transmission lines.
• Develop and agree on financing models for transmission together with National Treasury and the Presidency.
The Presidency said the MoU took into account the Eskom Memorandum of Incorporation, which makes it obligatory to inform the minister of public enterprises of critical decisions in this respect.
The MoU stipulates that the minister of public enterprises will:
• Remain the shareholder representative of Eskom.
• Support and assist the minister of electricity in his interactions with the Board by incorporating his responsibilities as listed in the MoU in the execution of his role as shareholder, and inserting the obligations of the Board in this regard into the Board Performance Evaluation Framework.
• Steer the restructuring of Eskom.
• Ensure the establishment and operationalisation of the transmission company.
• Lay the basis for the restructuring of Eskom arising from the Electricity Regulation Act Amendment Bill.
• Oversee the implementation of the Just Energy Transition strategy.
The MoU makes provision for regular review meetings between the ministers to address any impediments to its implementation. The ministers will also have regular review meetings with the president.
“The ministers will work together more closely and with their respective responsibilities clearly outlined to ensure the effective implementation of the Energy Action Plan,” the president said.
He announced the Energy Action Plan in July 2022 as South Africa’s plan to end
load-shedding and achieve energy security.
The arrangement outlined in the MoU will be operational until the end of the current administration. –SAnews.gov.za
