By Lehlohonolo Lehana.
President Cyril Ramaphosa has allocated a range of powers to his electricity minister Kgosientsho Ramokgopa to help address the energy crisis, almost three months after appointing him.
The announcement transfers some responsibilities away from Mineral Resources and Energy Minister Gwede Mantashe, who has faced criticism for stifling the government’s efforts to transition away from the use of coal, which is used to produce most of the nation’s electricity, and buy more green energy.
Mantashe, who initially described the Electricity Minister as a “project manager” and had reportedly told Ramaphosa he would consider quitting if powers were taken from him.
In a statement, the Presidency reported that Ramaphosa had transferred to Ramokgopa “all powers and functions contained in Section 34(1) of the Electricity Regulation Act, which were previously entrusted to the Minister of Mineral Resources and Energy”.
The President has also transferred to the Minister of Electricity relevant powers and functions set out in Section 34(2) of the Electricity Regulation Act.
Section 34 of the Act, the statement adds, deals with new generation capacity and provides for the Minister, in consultation with the regulator, to:
- (a) determine that new generation capacity is needed to ensure the continued uninterrupted supply of electricity;
- (b) determine the types of energy sources from which electricity must be generated, and the percentages of electricity that must be generated from such sources;
- (c) determine that electricity thus produced may only be sold to the persons or in the manner set out in such notice;
- (d) determine that electricity thus produced must be purchased by the persons set out in such notice;
- (e) require that new generation capacity must –
- (i) be established through a tendering procedure which is fair, equitable, transparent, competitive and cost-effective; and
- (ii) provide for private sector participation.
“This proclamation will provide the Minister of Electricity with the powers necessary to direct the procurement of new generation capacity and ensure security of supply.
“Other powers and functions contained in the Electricity Regulation Act – including those related to the implementation of determinations made in terms of section 34 – will remain with the Minister of Mineral Resources and Energy.”
It was not immediately clear, however, whether Ramokgopa has been given powers for policy development or for implementation, with the Gazette notice containing the full details not released together with the statement.
The statement adds that the President’s delineation of powers and functions is aimed at ensuring effective coordination and dedicated focus to deal more effectively and urgently with the electricity crisis.
“The Minister of Electricity will, as the President indicated in the State of the Nation Address, oversee all aspects of the electricity crisis response, including the work of the National Energy Crisis Committee. This will provide a single point of command for government’s efforts to close the shortfall in electricity supply.
“The Minister will work full-time with the Eskom board and management to end load-shedding and ensure that the Energy Action Plan announced by the President is implemented without delay,” the statement concludes.