By Lehlohonolo Lehana.
President Cyril Ramaphosa has approved an agreement giving Minister in the presidency responsible for electricity Kgosientsho Ramokgopa authority over the board and management of Eskom, while Public Enterprises Minister Pravin Gordhan will oversee the utility’s restructuring.
According to the presidency, the two ministers have agreed to sign the agreement to take measures against the growing crisis of power cuts.
This comes after several political parties have slammed Eskom for announcing the return of power cuts in the wake of the new year, citing concerns over the safety of the economy and the daily lives of citizens.
In a statement by the presidency, Ramaphosa said: “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 D approach outlined in the Memorandum of Understanding will further strengthen Eskom’s efforts to resolve the electricity crisis.”
He stated that the two ministers will work together more closely and with their respective responsibilities clearly outlined to ensure the effective implementation of the Energy Action Plan. The MoU paved the way for the Ramokgopa to fully focus on all aspects of the electricity crisis and the work of the National Energy Crisis Committee.
Ramokgopa will also exercise authority over the Eskom Board and management on ending load shedding and ensure that the Energy Action Plan is implemented without delay.
This will include improving the generation capacity, purchasing additional capacity, and also overseeing the implementation of the Eskom Generation Recovery Plan. Ramokgopa will also ensure that matters related to transmission are dealt with.
On the other hand, Gordhan will remain the shareholder representative of Eskom, support and assist Ramokgopa with his interactions with the board, steer the restructuring of Eskom, and also oversee the implementation of the just energy transition strategy as provided for in the Shareholder Compact.
The memorandum 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.
The arrangement outlined in the MoU will be operational until the end of the current administration.
The energy crisis, which has helped precipitate a protracted economic downturn, is a thorn in the side of the governing ANC as the country heads to a potentially transformative national election later this year.