Cape Town – The Presidency has approved a memorandum of understanding (MOU) delineating the roles of the electricity minister, Kgosientsho Ramokgopa, appointed ten months ago, and the public enterprises minister, addressing previous criticisms of unclear responsibilities.
The MOU facilitates a collaborative approach, outlining that the electricity minister will focus on resolving the energy crisis, exercise authority over Eskom’s board for ending load shedding, and oversee the energy action plan and Eskom generation recovery plan.
The public enterprises minister, as the main shareholder, will represent the government at Eskom, support the electricity minister, and manage the restructuring of Eskom and the establishment of a new transmission company.
The MOU will be in effect until the end of the current administration.
President Cyril Ramaphosa believes it will strengthen Eskom’s efforts to address the electricity crisis.
The MoU outlines the roles and responsibilities of the Minister of Electricity as follows:
- Focus full time on all aspects of the electricity crisis and the work of the National Energy Crisis Committee.
- Exercise authority over the Eskom Board and management on ending load shedding and ensure that the Energy Action Plan is implemented without delay.
- Improve generation capacity and the purchase of additional capacity.
- Oversee implementation of the Eskom Generation Recovery Plan.
- Ensure that the generation fleet performs optimally and results in security of supply and a low level of loadshedding.
- Ensure that matters dealing with transmission are dealt with, including the issuing of the Requests for Proposals and/or Requests for Information for financing of new transmission lines.
- Developing and agreeing on financing models and options for transmission together with National Treasury and the Presidency.
The Presidency said the MoU takes into account the Eskom Memorandum of Incorporation, which makes it obligatory to inform the Minister of Public Enterprises of critical decisions in this respect.
The MoU stipulates that the Minister of Public Enterprises will:
- Remain the shareholder representative of Eskom.
- Support and assist the Minister of Electricity in his interactions with the Board by incorporating the responsibilities of the Minister of Electricity listed in the MoU in the execution of his role as shareholder, in line with the Eskom Shareholder Compact, and inserting the obligations of the Board in this regard into the Board Performance Evaluation Framework.
- Steer the restructuring of Eskom in line with the Eskom Roadmap.
- Ensure the establishment and operationalisation of the transmission company.
- Lay the basis for the restructuring of Eskom arising from the Electricity Regulation Act Amendment Bill.
- Oversee the implementation of the Just Energy Transition strategy as provided for in the Shareholder Compact.
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Compiled by Betha Madhomu
