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The Energy Intensive Users Group of SA (EIUG) notes the cabinet announcement by the President last night, 30 June 2024. The EIUG particularly welcomes the establishment of the Electricity and Energy Ministry which will be a policy maker and shareholder for Eskom during this rapidly transforming era. This dedicated ministry will presumably primarily assist Eskom to focus on its mandate without being distracted across three ministries (such as Minerals Resources and Energy, Public Enterprises, and Electricity) as was the case under the previous administration. The appointment of Dr Kgosientsho Ramokgopa as Minister in this new ministry also bodes well for continuity of plans already in place, and we hope his broader mandate will expedite the much-needed transformation of the energy and electricity industry.

Indications are that we are now moving out of the energy security crisis, as evidenced by the recent lull in loadshedding, and that as a country we are putting together key steps for transforming the industry being driven through the National Electricity Crisis Committee (NECOM). However, there is still so much that is required to transform the industry to achieve the objectives of energy security, price affordability, accessibility and decarbonisation of our energy mix.

As the EIUG we expect that the ministry will, as a matter of urgency, ensure that the Electricity Regulations Amendment Bill (ERA) is signed into law and that the Integrated Resources Plan (IRP) is finalised, both of which will act as guiding frameworks for the electricity transformation. For the seventh administration programme we hope the Ministry will also drive:

  • Electricity Distribution Industry (EDI) and Municipal reform which is required to enable distribution transformation and sustainability.
  • IRP focused on Just Energy Transition and Decarbonisation without compromising the necessary energy security and economic growth
  • Fast tracking the execution of Transmission Development Plan (TDP) and indiscriminate grid access criteria.
  • Fit-for-purpose competitive market operationalisation, including Eskom’s unbundling, and capacitation of all role-players, including the regulator.
  • Provision of policy direction or vision beyond the current crisis-informed reform to a sustainable end-state for energy and electricity in our country.

As the EIUG we welcome the appointment of Dr Kgosientsho Ramokgopa and his Deputy, Ms Samantha Graham, and we offer our support to work with them and other stakeholders in transforming the industry for the betterment of the economy and citizens of our country.

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For further information, contact: Fanele.Mondi@eiug.org.za / 076 823 7086

Notes to the editors:

The EIUG was established in 1999, and is a voluntary, non-profit association of energy intensive consumers whose members currently account for over 40% of the electrical energy consumed in South Africa. As electricity is a key input to the processes of these organisations, it is the ‘life blood’ of our businesses. Our members collectively contribute over 20% to the GDP of South Africa and employ over 650 000 people across multiple sectors, including mining, quarrying, manufacturing, electricity, transportation, and water. The EIUG is dedicated to the promotion of the interests of energy users in South African Industry.

The EIUG is a consumer-led organisation working for the good of the country. The group strongly believes that energy is the engine for economic growth and development in South Africa. We are therefore committed to working with government, power utilities and other stakeholders to ensure South Africa has energy industries which provide reliable supply at acceptable quality and competitive prices.

The EIUG is a consumer-led organisation working for the good of the country. The group strongly believes that energy is the engine for economic growth and development in South Africa. We are therefore committed to working with government, power utilities and other stakeholders to ensure South Africa has energy industries which provide reliable supply at acceptable quality and competitive prices. 

Energy Intensive Users Group of Southern Africa NPC
2019/478422/08
www.eiug.org.za
info@eiug.org.za