Power deal with Gordhan: Ramokgopa now has charge over Eskom Board to end load shedding

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 better clarify their respective responsibilities with respect to Eskom and the resolution of the electricity crisis.

In a statement, the presidency said the MoU establishes a firm basis for a collaborative approach between the two ministers in exercising their assigned powers and functions.

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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.

Roles clearly defined

This would also include: “Exercise authority over the Eskom Board and management on ending load shedding and ensure that the Energy Action Plan is implemented without delay,” the presidency said.

Ramokgopa’s responsibilities would also include: Improving generation capacity and the purchase of additional capacity.

He would also have to oversee the implementation of the Eskom Generation Recovery Plan. Ensuring the generation fleet performs optimally and results in security of supply and low level of load shedding.

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Ramokgopa would also have to ensure that matters dealing with transmission are dealt with, including the issuing of the Requests for Proposals and/or Requests for Information for financing of new transmission lines.

According to the statement Ramokgopa would also have to be responsible for developing and agreeing on financing models and options for transmission together with National Treasury and the Presidency.

“The MoU takes 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 Presidency said.

Gordhan remains a key figure over Eskom

The MoU stipulates that the Minister of Public Enterprises will remain the shareholder representative of Eskom.

His responsibilities would include: “Support and assist the Minister of Electricity in his interactions with the Board by incorporating the responsibilities of the Minister of Electricity listed in the MoU in the execution of his role as shareholder, in line with the Eskom Shareholder Compact, and inserting the obligations of the Board in this regard into the Board Performance Evaluation Framework.”

Gordhan was also expected to steer the restructuring of Eskom in line with the Eskom Roadmap.

He was also expected to 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 and oversee the implementation of the just energy transition strategy as provided for in the Shareholder Compact.

According to the presidency the  MoU makes provision for regular review meetings between the ministers to address any impediments to the implementation of the MOU. The ministers will also have regular review meetings with the president.