Parliament, Saturday, 7 December 2024 – The Portfolio Committee on Electricity and Energy had a fruitful engagement on Thursday with Eskom on the utility's performance targets for the 2024/25 financial year and on its separation into three distinct entities: generation, distribution, and transmission.
The committee also received a briefing on the introduction of the National Transmission Company of South Africa (NTCSA) an entity established to, among other things, enhance the efficiency and transparency of electricity transmission in the country, overseeing the management of the national transmission grid, facilitating access for independent power producers, and ensuring that the electricity market operates competitively.
The committee welcomed the establishment of the NTCSA, recognising its potential to improve operational efficiencies and foster a more inclusive energy sector. Eskom executives provided the committee with comprehensive updates regarding the utility’s generation capacity. The executives highlighted the key differences between loadshedding and load reduction, the socio-economic impacts of decommissioning coal-powered plants, and Eskom's summer plan aimed at ensuring a stable electricity supply during peak demand seasons.
The executives emphasised the importance of operational enhancements and the progress made in reducing loadshedding incidents, noting that the country has enjoyed eight months without loadshedding. They highlighted the socio-economic ramifications of decommissioning initiatives, stressing that community engagement and support are vital as the utility transitions towards a more sustainable energy future.
The committee expressed concern over municipalities that have not been compliant with payment obligations and stressed the need for stringent measures to ensure accountability. The executives acknowledged these concerns and indicated that the utility is actively pursuing legal avenues to recover outstanding debts from municipalities while engaging with the National Treasury for support.
On the separation of Eskom into three entities, the committee emphasised the need for transparent governance to prevent conflicts of interest and ensure fair access for independent power producers. Eskom Executives assured the committee that there are implementable measures to facilitate a competitive electricity market while maintaining grid stability.
Regarding concerns the committee expressed about the potential for Eskom's generation capacity to compete with independent power producers under the new structure, Eskom executives reiterated their commitment to creating a level playing field, with the NTCSA playing a crucial role in regulating access to the grid and ensuring that all players, including Eskom, operate under the same rules.
The committee acknowledged the challenges faced by Eskom in securing new investments and emphasised the importance of collaboration between the utility, government, and private sector to enhance infrastructure development. Members of the committee underscored the necessity of revising regulatory frameworks to support the energy transition effectively.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON ELECTRICITY AND ENERGY, MS NONKOSI MVANA.
For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Yoliswa Landu (Ms)
Cell: 081 497 4694
E-mail: ylandu@parliament.gov.za
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