Electricity and Energy Minister Dr Kgosientsho Ramokgopa has asked the Eskom board to bring down electricity costs. Ramokgopa said on Friday that he also wants more reliable supply and a secure future for Eskom.
He spoke at a media briefing in Pretoria. Dr Mteto Nyati continues as chairperson of the Eskom board.
“Eskom has an indispensable role in that work. The shareholder expects its Board to turn the gains of the recovery programme into a sustainable future for the utility and better service for the people who depend on it,” Ramokgopa said.
According to SAnews, the minister said Eskom must support investment and jobs. He said reliable and affordable power would ease pressure on households.
Ramokgopa set out what the government expects from what he called Eskom 2.0. He said the utility must plan for new generation capacity and expand the grid. It must also build better ties with customers and adjust as new generators and traders enter the market.
The board must draw up a single roadmap for Eskom. The minister said the plan should cover the next three, five and 10 years.
“It must define the utility’s public obligations, future generation mix, commercial position and the investment required to sustain them. Eskom must be able to fulfil its mandate without relying on repeated fiscal support or sustained double-digit tariff increases as a business model,” the minister said.
Under the Integrated Resource Plan 2025, Eskom must do technical and financial work on its power station fleet. This work will guide board decisions on the future of that fleet.
According to SAnews, this includes cutting emissions from coal-fired power stations and looking at coal-abatement technologies. It also covers repurposing and repowering power station sites. Eskom must also define its role in gas and nuclear energy.
“Eskom Green must turn its approved strategy into a credible pipeline of projects. Its planned engagement with potential partners on approximately 2 GW of renewable capacity is an early step in that work,” Ramokgopa said.
Ramokgopa said a bigger transmission network was needed to connect new power and meet growing demand from industry.
“The shareholder expects Eskom and the National Transmission Company South Africa to advance a deliverable grid programme, including through Independent Transmission Projects. The scale of this investment must also support South African manufacturers, suppliers and skills development,” he said.
The minister said Eskom should also look for growth across Southern Africa. This includes electricity trade with neighbouring countries and power lines that cross borders.
“Viable projects need to be developed with regional partners and potential funders, including the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC) and the African Development Bank,” Ramokgopa said.
He also called for a stronger focus on business deals and customers. “Mining and industry remain important sources of demand. Data centres require a deliberate approach to reliable supply, suitable locations, network capacity and long-term contracts,” he said.
“Customer care must be central to Eskom’s plans to retain and attract customers through dependable service, accurate billing and the timely resolution of complaints. Municipal debt continues to place electricity supply and network investment under pressure,” Ramokgopa said.
According to SAnews, the Department of Electricity and Energy will work with National Treasury, CoGTA and SALGA. The aim is to improve payment discipline and make electricity supply sustainable.
“Free Basic Electricity must reach eligible households. Smart metering can improve customer service while strengthening revenue collection and the management of distribution networks,” the minister said.
The government said it expects the board to cut system losses and revenue leakage. It also wants better value from buying, maintenance and project work, as well as tighter financial controls.
Ramokgopa said Eskom should aim for an unqualified audit opinion with no material findings.
He said Eskom must also make more use of artificial intelligence. At first it will be used for technical losses, forecasting and grid management, then across wider operations.
Source: this article is based on reporting by SAnews.gov.za. Image: GCIS via SAnews.gov.za. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.