- President Cyril Ramaphosa says government has embarked on far-reaching reforms in the electricity sector to help improve the country’s energy security and lower electricity costs.
Delivering his annual address in the National Council of Provinces (NCOP) in Parliament, Cape Town, on Thursday, President Ramaphosa said the country has done well across almost all municipalities, with between 80 and 100% of households having access to electricity.
“We have embarked on far-reaching reforms of the electricity sector that will establish a competitive electricity market. This will improve energy security and lower the cost of electricity,” he said.
The President also acknowledged that the country has struggled for more than a decade to produce enough electricity to meet demand, which resulted in crippling load shedding.
He highlighted that the cost of building new generating capacity, combined with the effects of State capture and mismanagement, has contributed to a steady rise in the cost of electricity for consumers.
“Even now, NERSA [National Energy Regulator of South Africa] is considering an application from Eskom for tariff increases that will put a further strain on households and businesses.
“It is vital that we settle on a tariff path that enables Eskom to achieve financial sustainability while not placing an undue burden on consumers of electricity,” the President said.
Author: Bryan Groenendaal
