Private Sector Role in Electricity Generation and Transmission Should Start Urgently

Dear Editor

The SONA commitment from President Ramaphosa last Thursday to bring private sector competition to the electricity generation market, must now be met with urgent implementation. The DA calls for the timeline of this major reform to be made public in the next few weeks, and we call for the competitive market to commence within the next 12 months.

The President’s failure to detail the implementation plans for these policies was a regrettable omission from his address, but this can be corrected with urgent action from the President and Electricity Minister Kgosientsho Ramokgopa.

On Thursday, we also expected the President to announce the publication of key strategic documents needed to reform our energy sector:

• ⁠the Integrated Energy Plan (IEP),
• ⁠⁠the Integrated Resource Plan (IRP), and
• ⁠⁠the Renewable Energy Masterplan (SAREM).

These documents are essential for creating the certainty needed to attract investment and accelerate the transition to a more stable and sustainable energy supply, but President Ramaphosa did not make the announcement expected. This is a concerning delay.

Little emphasis was placed on the Just Energy Transition, suggesting a lack of concrete action plans to ensure an environmentally-friendly energy future, that creates employment and opportunity for all South Africans.

To urgently address the preparations for a competitive energy market, President Ramaphosa and Minister Ramokgopa must speed up the finalisation of the market code and grid access rules. These are vital to ensure the competitiveness of the electricity sector.

The President also failed to address the urgent need for electricity wheeling and trading, which would demonstrate tangible progress toward market liberalisation, and the DA calls for this to follow his SONA without delay.

Undermining the reform of the energy sector remains the critical issue of municipal debt to Eskom, which was concerningly not addressed by the President.

This growing crisis threatens both municipal service delivery and Eskom’s financial sustainability.

The DA calls on government to urgently provide a detailed implementation framework with the planning documents for the reform of the electricity sector.

South Africa deserves more than just commitments in speeches – the country needs clear timelines, concrete actions, and decisive leadership to resolve the ongoing energy crisis.

Regards

Kevin Mileham MP
DA Spokesperson on Electricity and Energy