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Call for SA to halt energy decisions

Cape Town - Minister of Energy Tina Joemat-Pettersson must halt all future new energy requirement decisions, said the Organisation Undoing Tax Abuse (Outa) in  at statement on Friday.

The civil society organisation believes this should be done until the Integrated Resource Plan (IRP) on Energy is updated. Failing to do this, Joemat-Pettersson may be accused of being remiss in her duties and responsibilities, said Outa.

“An updated IRP is long overdue and decisions on new energy build programs to motivate Eskom’s Nuclear and New Coal power production projects, have made use of outdated demand and technology pricing of the IRP 2010-2030 report,” said Outa chairperson Wayne Duvenage.

Outa expressed concern that Eskom is allowed to drive a new Nuclear build program in the absence of an updated IRP.

A new study by the CSIR suggests that no new nuclear or coal fired power plants are required for South Africa. Using latest demand forecasts and pricing plus efficiency of renewable energy in the forms of solar and wind, with a blend of Gas for base power stability, South Africa’s electricity needs will be more than catered for, as will the ability to reduce the nation’s electricity tariffs, the authors found.

READ: Updated energy plans to be open for public comment

A number of developments have effected the energy sector since the initial IRP of 2010. On Thursday Cabinet officially approved the IRP and Integrated Energy Plan (IEP), which will give guidance on the country’s energy infrastructure development and type of energy generation.

Outa also called on Eskom’s executives under the leadership of Brian Molefe need to explain why they are holding back on signing agreements with the Renewable Energy Independent Power Producer Procurement Program.

READ: Molefe softens stance after snubbing R58bn worth of IPPs

IPP owners are concerned that Eskom wants to cut IPPs to ensure the 9.6 GW nuclear deal can be approved. Many speculate that this deal will create space for massive corruption at a state level.

"Eskom’s actions and recent talk of rushing into the Nuclear decision, amidst the evidence from the CSIR Study, points to a State Owned Entity acting outside the best interests of the public," it said.

"The state capture report recently released by the Public Protector also indicates questionable conduct by Eskom’s executives, which point to the irrationality of the Nuclear decision," Outa added.

Wayne argued that this new information on South Africa’s ability to source new energy requirements from increased renewable energy sources, highlights a concern about the Multi Year Price Determination (MYPD) methodology for Eskom’s tariff hikes.

“We believe the MYPD methodology now requires extreme scrutiny as this process has become a farce and enables Eskom to push up the country’s electricity tariffs amidst a false energy demand and pricing environment,” he said.

“Eskom’s desire for massive above inflation tariff hikes are unnecessary and out of line with their mandate to serve the public with the best electricity solutions possible,” said Wayne.

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