“Power cuts in South Africa: New memorandum of understanding to resolve the energy crisis”

In this digital age where information circulates at dizzying speed, it is essential to be well informed about current events. This is all the more important when we want to understand the decisions and actions taken by our leaders, particularly in crucial areas such as energy.

A recent statement from President Cyril Ramaphosa clarified the respective roles of Minister of Public Enterprises, Pravin Gordhan, and Minister of Electricity, Kgosientsho Ramokgopa, in the context of the energy crisis induced by Eskom, the South African energy company.

According to the press release, the two ministers signed a memorandum of understanding defining their responsibilities.

Ramokgopa’s role as electricity minister had raised questions, particularly in relation to those of two ANC heavyweights, Gordhan and the energy minister, Gwede Mantashe. By May 2023, Ramaphosa had transferred certain powers under the Electricity Regulation Act to his new energy czar, effectively relegating Mantashe to the process.

According to Friday’s statement, under the MOU, Ramokgopa will focus full-time on all aspects of the energy crisis and the work of the national energy crisis committee.

The Minister of Electricity will also exercise authority over the Eskom board and management to end power cuts.

Ramokgopa’s other responsibilities include improving generation capacity and purchasing additional capacity, overseeing the implementation of Eskom’s generation recovery plan, ensuring optimal performance of the power plant, as well as addressing issues related to electricity transmission, including helping to develop financing models.

Gordhan, meanwhile, will remain the representative of Eskom shareholders. As Minister of Public Enterprises, he will support and assist Ramokgopa in his dealings with the company’s board of directors.

Gordhan is still responsible for leading the restructuring of Eskom. He is also responsible for ensuring the establishment and implementation of the Eskom transmission company, as well as overseeing the implementation of the company’s just energy transition strategy.

“Significant progress has been made in reducing the scale of power outages, but much work remains to be done to ensure a secure supply of electricity,” Ramaphosa said of the MOU.

“The collaborative approach set out in the MOU will further strengthen Eskom’s efforts to resolve the energy crisis. Ministers will work together more closely, with clearly defined responsibilities, to ensure the effective implementation of the plan energy action.”

According to the statement, the MOU will remain in place until the end of the current administration.

Meanwhile, after enjoying a respite over the holidays, the country faced a new round of power cuts this week.

The energy crisis, which has contributed to a prolonged economic recession, poses a significant challenge for the ruling ANC as the country prepares for potentially transformative national elections later this year.

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