Ramaphosa Approves MoU to Streamline Eskom Rescue Efforts: Ministers to Share Power in Tackling Load Shedding

Pretoria, South Africa – January 5, 2024 – In a move aimed at bolstering the fight against load shedding, President Cyril Ramaphosa has approved a Memorandum of Understanding (MoU) clearly defining the roles of Ministers Pravin Gordhan (Public Enterprises) and Kgosientsho Ramokgopa (Electricity) regarding Eskom and the ongoing electricity crisis. This collaborative approach marks a significant shift in the government’s strategy, promising focused leadership and streamlined decision-making.

The MoU outlines a clear division of responsibilities:

Minister of Electricity Kgosientsho Ramokgopa:

• Takes full-time command of the electricity crisis and the National Energy Crisis Committee.
• Holds authority over the Eskom Board and management, overseeing swift implementation of the Energy Action Plan and ensuring an end to load shedding.
• Focuses on boosting generation capacity, securing additional power, and optimizing existing Eskom resources for reliable supply.
• Oversees the Eskom Generation Recovery Plan and ensures optimal performance of the generation fleet.
• Manages transmission issues, including issuing tenders for new lines and collaborating with Treasury and the Presidency on financing models.

Minister of Public Enterprises Pravin Gordhan:

• Remains the shareholder representative of Eskom, supporting Minister Ramokgopa in his interactions with the Board.
• Guides Eskom’s restructuring process according to the Eskom Roadmap.
• Establishes and operationalizes the separate transmission company.
• Lays the groundwork for further restructuring in line with the Electricity Regulation Act Amendment Bill.
• Oversees the implementation of the just energy transition strategy outlined in the Eskom Shareholder Compact.

Regular review meetings between the Ministers and with President Ramaphosa will ensure smooth implementation of the MoU and address any obstacles that may arise.

Commenting on the agreement, President Ramaphosa acknowledged progress made in reducing load shedding but stressed the need for continued efforts. He stated, “The collaborative approach outlined in the MoU will further strengthen Eskom’s efforts to resolve the electricity crisis. The Ministers will work together more closely, with their respective responsibilities clearly outlined, to ensure the effective implementation of the Energy Action Plan.”

This MoU signifies a renewed commitment to tackling the electricity crisis head-on. With clear leadership roles and streamlined decision-making, South Africans can hope for a future with stable and reliable power supply.