Energy poverty and solar power impact Eskom

Poverty combined with the spread of solar power in South Africa are two reasons behind the decline in load shedding.

The hike in electricity tariffs is causing energy poverty in poor households as customers cannot afford electricity at higher prices, according to Minister of Electricity and Energy Kgosientsho Ramokgopa yesterday.

“Electricity is there from the generation side. Eskom is giving you the megawatts required to meet the demand, but people cannot afford the cost of electricity,” he said.

City Power has just announced a R200 monthly service fee to be imposed on prepaid users to start this month.

Pricing structure undermining capacity to manage electricity costs effectively

Ramokgopa said the current electricity pricing structure was undermining the capacity of households and municipalities to manage their electricity costs effectively.

ALSO READ: ‘No possibility under the sun R78 billion will be collected’, says Ramokgopa on municipal debt

He stated that as a consequence there would be days in the month when electricity would not be available in households because people could not buy it.

This also meant municipalities were generating less revenue, he said yesterday.

He also warned that municipalities were investing too little on infrastructure maintenance and modernisation, with some having mismanagement issues, resulting in costly issues on the distribution side.

The department of electricity and energy is working on an electricity distribution industry restructuring road map to address municipal mismanagement, debt reduction and inadequate infrastructure investment, he said.

Restructuring must solve systematic challenges

The minister said the restructuring must solve systematic challenges.

ALSO READ: ‘We are proceeding with it’: Government will defend nuclear power plan – Ramokgopa

“Challenges like non-ring-fenced electricity business, poor revenue management, poor payment culture and ailing and outdated grids; inadequate maintenance and infrastructure investment.”

He said communities should no longer experience electricity shortages due to load reduction, pointing out that advancements in solar power technology made this possible.

Chris Yelland, an energy analyst, said the minister was bringing a new sense of urgency to his portfolio.

“He’s getting stuck into some important issues that have been neglected for far too long.

“The minister’s focus on electricity distribution, particularly in the municipal sector, is very welcome. This has been a long-standing issue that previous administrations have neglected.”

ALSO READ: SA faces new crisis: Ramokgopa warns Gauteng’s load reduction the ‘tip of the iceberg’

Ramokgopa also said he saw the possibility of huge increases in bid windows being rolled out to procure renewable energy.

“I am going to be ultra-aggressive on the renewable energy side. I think we have taken a bit longer than necessary.”

Yelland added: “He has also taken on the Integrated Resource Plan for electricity, which has been delayed for years.”

Ramokgopa’s approach to nuclear issue cautious

He noted that Ramokgopa’s approach to the nuclear issue was cautious.

“Nuclear power is seen as a longer-term prospect, probably not becoming a solution before 2035.

ALSO READ: SA’s bloated Cabinet ‘least’ of Godongwana’s problems

“In the short term, issues like generation, transmission and distribution are more critical.

“Nuclear power is not expected to materialise soon due to its lengthy planning and construction timelines,” he said.

PLEASE NOTE: We have relaunched a new app for a better experience. Please update your old app on the Google Play Store or the Apple App Store.