Ramaphosa transfers powers from Gwede Mantashe to electricity minister

[Nat Quinn]

South African President Cyril Ramaphosa allocated a range of powers to his electricity minister to help address the nation’s energy crisis, almost three months after appointing him.

The announcement transfers some responsibilities away from mineral resources and energy minister Gwede Mantashe, who has faced criticism for stifling the government’s efforts to transition away from the use of coal, which is used to produce most of the nation’s electricity, and buy more green energy.

“This proclamation will provide the minister of electricity with the powers necessary to direct the procurement of new generation capacity and ensure security of supply,” the presidency said in a statement on Friday.

“The president’s delineation of powers and functions is directed at ensuring effective coordination and dedicated focus to deal more effectively and urgently with the electricity crisis.”

Ramaphosa has drawn censure from local companies for delaying giving electricity minister Kgosientsho Ramokgopa, who was appointed on 7 March 2023, the authority he needs to deal with record blackouts that are hobbling Africa’s most-industrialised economy.

The outages have fueled investor concern about the outlook for economic growth and dragged the rand to record lows against the dollar this year.

Ramokgopa will be able to determine the types of energy sources from which electricity must be generated, according to the statement.

He’s also been given the authority to enable private-sector participation in the procurement of new generation capacity.

As South Africa’s electricity shortages have grown more severe, a number of government measures to increase supply have failed to show much progress.

Ramaphosa in July doubled the procurement of renewable auctions, but the national grid has limited connections for projects in some regions.

A number of processes overseen by Mantashe to buy in additional generation capacity have been dogged by delays and legal challenges.

President Cyril Ramaphosa (left) said South Africa’s electricty shortfall will be resolved in the next 12-18 months. Energy minister Gwede Mantashe (right) previously said it would only take 6-12 months. Credit: GCIS

In short, Ramokgopa has been handed the following powers and functions as set out in Section 34(2) of the Electricity Regulation Act:

The Minister may, in consultation with the National Energy Regulator of South Africa —

• determine that new generation capacity is needed to ensure the continued uninterrupted supply of electricity;

• determine the types of energy sources from which electricity must be generated, and the percentages of electricity that must be generated from such sources;

• determine that electricity thus produced may only be sold to the persons or in the manner set out in such notice;

• determine that electricity thus produced must be purchased by the persons set out in such notice;

• require that new generation capacity must:

  • be established through a tendering procedure which is fair, equitable, transparent, competitive and cost-effective;

  • provide for private sector participation.

 

SOURCE:Ramaphosa transfers powers from Gwede Mantashe to electricity minister (mybroadband.co.za)

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