NERSA’s MYPD approval of 8% instead of 16%: response by Eskom & SALGA

PMG 24 May 2013.

Date of Meeting:24 May 2013
Chairperson:Mr S Njikelana

The meeting looked at the rationale behind the National Energy Regulator of South Africa’s price determination of 8% in response to Eskom’s request for a 16% tariff increase. The South African Local Government Association (SALGA) was asked to respond to the 8% increase on behalf of municipalities. Continue reading

Hints of more support as Eskom mulls ways to plug R225bn hole

Terence Creamer | 24 May 2013 | Engineering News

Eskom reaffirmed to the Parliamentary Portfolio Committee on Energy on Friday that it would not, through efficiencies alone, be able to close the R225-billion financial gap arising from the lower-than-requested tariff determination for the coming five years.

Several other responses were, therefore, being pursued, including an initiative to identify whether additional support might be required from the utility’s shareholder, the South African government.

On February 28, the National Energy Regulator of South Africa (Nersa) granted Eskom yearly increases of 8% for the period from 2013/14 to 2017/18, instead of the 16% it had requested. This translated into allowable revenue for the period of R862-billion, rather than the nearly R1.1-trillion sought. Continue reading

Eskom briefing to the PCE on MYPD

Please be advised that the meeting of the Parliamentary Committee on Energy is scheduled to take place as follows:

Date: Friday, 24 May 2013
Time: 09:00 – 13:00
Venue: Old Assembly Chambers, Parliament, South Africa

Briefing by ESKOM, the National Energy Regulator of SA (NERSA) and the SA Local Government Association (SALGA) respectively, on the Multi-Year Price Determination 3 (MYPD3) ______________________________________________________________________

Enquiries: Mr Arico Kotze, Committee Secretary
Tel: (021) 403-3662
Fax: 0865055618
Cell: 083 709 8470
Email :

Budget Vote speech by Minister of Energy

Department of Energy 2013/14 Budget Vote speech by Minister of Energy, Ms Dipuo Peters, MP at the Old Assembly Chambers, Parliament, Cape Town
14 May 2013

Honourable Chairperson
Deputy Minister of Energy, Ms Barbara Thompson
Honourable Chairperson and Members of the Energy Portfolio Committee
Honourable Members
Director-General and the Senior Management of the Department of Energy
Chairpersons and CEO’s of Public Entities
Guests and Stakeholders
Ladies and gentlemen.

Our first democratically elected President, Dr Nelson Mandela once said, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”

It is an instructive remark, enjoining us all to work hard to not only to cast of the chains – but to respect and enhance the freedom of others.

It is therefore fitting that, four years since President Jacob Zuma, through a stand-alone department assigned us the task of translating the African National Congress (ANC)’s policies on energy into implementable government programmes, we must reflect on the progress made and the road traversed thus far..

Click to continue reading complete speech.

South Africa: Nuclear Power’s Threat to Democracy

EarthLife Africa | 30 April 2013 |


Without much fanfare, the Department of Energy has propelled the country towards a democratic crisis. In a briefing to Parliament’s Portfolio Committee on Energy (April 16, 2013), the Department of Energy stated that it would not be reviewing the country’s electricity plan (Integrated Resources Plan 2010) this year, and that the planned six new nuclear reactors were not up for review at any point in the future. The Department’s Director General, Nelisiwe Magubane, indicated that this was the view of Cabinet.

The possible purchase of 9600 MW of new nuclear power represents the most expensive procurement in the history of South Africa and will have long-term impact on the level of South Africa’s national debt.

The day after the Department’s briefing to Parliament, the National Planning Commission released a study, conducted by the University of Cape Town’s Energy Research Centre, into South Africa’s energy future. The headline messages from this study (Towards a New Energy Future, available at are that there is no need to invest in nuclear power for at least the next 15 to 25 years, that nuclear power is not cost-effective based on the latest cost data, and that South Africa can meet its commitments on carbon emissions without nuclear power. One of the reasons why nuclear is not required now is that the demand for electricity has grown slower than what the Department of Energy predicted back in 2010…

(The full NPC modelling report is also available here).


State should use extreme caution in nuclear decision

Business Day Live 25 April 2013.

A DAY after telling us that the government says it is hurrying up to sign contracts for new nuclear power stations, Business Day astonished us all by reporting that the National Planning Commission, which is also part of the government, believes a rushed decision would be extremely unwise at this stage.

In an earlier briefing to Parliament, Department of Energy director-general Nelisiwe Magubane told MPs that the nuclear build programme was not negotiable. She also said that the NPC was in favour of the decision and its immediate implementation…

(Contributor’s note: An excellent note! I hope Minister Peters and DG Magubane read it!)


ISMO Bill reveals need for electricity sector restructure

Natasha Odendaal | 28 March | Engineering news

The Portfolio Committee on Energy on Thursday said it had adopted the long-awaited Independent System and Market Operator (ISMO) Bill, but the process reaching this point had revealed the need for the restructuring of the electricity sector.

The adoption of the amended Bill paved the way for the establishment of an ISMO as a State-owned entity.

This would enable the provision of an independent system operation to ensure the “safe, secure and efficient” operation of the integrated power system, the trading of electricity at wholesale level and other related activities.

Committee chairperson Sisa Njikelana said the committee aimed to ensure a favourable environment for the ISMO to operate and had tabled several recommendations to this end, adding that efforts on the restructuring of the entire electricity sector be “addressed as matter of urgency”.

He also suggested that a due diligence study be undertaken to determine the feasibility and implications of the transfer of transmission assets and a final report be submitted to the National Assembly by November.

Further, a cost benefit analysis of incorporating the transmission assets into ISMO, as well as establishing a transmission system operator, should be undertaken.

Edited by: Chanel de Bruyn