In a significant development, South Africa’s President has approved an agreement granting electricity minister Kgosientsho Ramokgopa authority over the board and management of the state-owned power utility, Eskom Holdings SOC Ltd.
This move comes almost a year after Ramokgopa was appointed to the newly created position to address the persistent power outages that have been plaguing the country’s economy for over a decade.
When Ramokgopa’s appointment was initially announced, there was limited information regarding the extent of his duties and the authority he would possess over Eskom.
[ June Steenkamp Not Against Pistorius Release, Only Wish To Live In Peace ]
However, with the approval of this memorandum of understanding, a clear framework has been established to guide the collaborative efforts between Ramokgopa and Pravin Gordhan, the Public Enterprises Minister who will oversee the restructuring of Eskom.
The memorandum of understanding sets the foundation for a joint approach between the ministers in exercising their assigned powers and functions.
Ramokgopa’s responsibilities include not only ending power outages but also improving and acquiring additional generation capacity, and overseeing the implementation of the Eskom Generation Recovery Plan.
He will also ensure optimal performance of the generation fleet and develop financing models and options for the power transmission network in collaboration with the National Treasury and the Presidency.
As a state-owned company, Eskom falls under the jurisdiction of Gordhan’s department. The plan is to restructure Eskom into separate entities for transmission, generation, and distribution.
The agreement takes into account the Eskom Memorandum of Incorporation, which makes it mandatory to inform the Minister of Public Enterprises of critical decisions related to this restructuring process.
Gordhan’s responsibilities, on the other hand, include establishing and operationalizing a national transmission company and implementing the just energy transition strategy. This strategy aims to ensure a smooth and equitable transition to cleaner and more sustainable energy sources.
The approval of this agreement signifies a significant step towards resolving the long-standing issue of power outages in South Africa. The persistent blackouts have had a detrimental impact on the country’s economy, hindering growth and development.
By granting Ramokgopa the necessary authority and support, the government is demonstrating its commitment to addressing this pressing issue and ensuring a stable and reliable power supply for the nation.
The restructuring of Eskom into separate entities is also a crucial aspect of the government’s strategy to improve the efficiency and effectiveness of the power utility.
Catch up with the latest news from The Times Post on WhatsApp by following our channel. Click here to join.
