Executive Undertakings: Minister of Public Enterprises

Meeting report

The Chairperson welcomed the Minister of Public Enterprises, Mr Pravin Gordhan, and everyone in the meeting. The Minister will report on the undertaking to the NCOP House sitting on 24 May 2023.

Mr Pravin Gordhan, Minister of Public Enterprises, said an Honourable Member also requested the information required on the 26th of June. On 2 August, he wrote back to the Honourable Member, recording the same issues that will be presented today. The Ministry subsequently received an invitation on 20 October to present the same information.

Briefing by the Minister

The Minister took Members through the presentation covering five issues he needed to address. These were: Transmission Development Plan and required investment in expanding the transmission grid; Government Roadmap of Eskom in a Reformed Supply Industry (2019); National Treasury Municipal Debt Relief Package; Koeberg 20-year life extension programme and the Recovery of the Kusile and Medupi generating units.

Regarding Koeberg, essentially, Koeberg has two units that produce over 300MW. The first unit underwent a life extension programme, enabling the power station and that unit to function for another 20 years. There has been a 24-month delay due to disputes between Eskom and Framatorm, and in some instances, Eskom is not delivering what it is supposed to deliver. Once this process is complete, it will follow the same process generation process and licenses. The second unit will also be subjected to the same extension programme once the first one is complete. We need to ensure no license problems regarding the two units.

He also touched on the recovery progress of generating units at Medupi and Kusile.

As for the Municipal Relief Debt package, the way it works is that various municipalities can apply for the programme and must prove their bona fide current account or debt owed to Eskom. If they pay the debt for long enough, consistent with the National Treasury regulations and requirements, the benefit for the municipality is a write-off of one-third or two-thirds of the total debt, depending on the period. It is a quid pro quo process. So far, nine municipalities have been compliant. Thirteen have not paid their current accounts in September. The municipality will forfeit their benefit for debt write-off if there is non-payment for one or two months.

More municipalities are considering forming part of this programme.

(See Presentation)

The Chairperson appealed to Members to base their questions on the presentation.

Discussion

Mr R Badenhorst (DA, Western Cape) welcomed the presentation. He pointed out that there is excess gas going to waste at the PetroSA plant in Mossel Bay; should that gas not be utilised to generate more electricity? Eskom would save about 28% and reduce the carbon footprint by approximately 35%. When will this happen? If the Minister did not have this information at hand, he asked that it be submitted in writing to the Committee.

The Minister noted he did not have the details, but the diesel-oriented plants would be converted into gas usage; however, he was uncertain how far that conversion was. Currently, we are still using a fair amount of diesel. He welcomed the case on the carbon footprint. The Ministry will follow up on the conversion process of the plants and access to gas.

There is one project that is coming online tomorrow morning. The DMRE will also make certain announcements on the usage of gas.

Mr Badenhorst asked if it were possible to provide this response in writing to the Committee.

The Minister noted that it will be compiled and submitted.

The Chairperson welcomed the suggestions and thanked the Minister for his presence.

The meeting was adjourned.