Electricity minister has a different kind of power problem
Despite officially receiving legislative powers from President Cyril Ramaphosa, Minister of Electricity Kgosientsho Ramokgopa remains extremely limited in what he can do.
Jason van der Poel from Webber Wentzel said that the Ramokgopa’s new powers appear to significantly overlap with the other ministers, especially Minister of Mineral Resources and Energy Gwede Mantashe.
In May, President Cyril Ramaphosa signed a Proclamation transferring certain powers under the Electricity Regulation Act No. 4 of 2006 (ERA) from Mantashe to Ramokgopa.
Although the proclamation was intended to bring clarity regarding the powers of the relevant ministers, it has just added further confusion.
As per the proclamation, Ramokgopa will have all the powers and functions specified under sections 34(1) and 34(2) of the ERA, which empower the minister to determine the sources of new energy generations, the percentage generated per source, who it can be sold to, and to hold a competitive tendering process.
However, he has not received the ministerial power to implement a determination on new energy capacity contained in section 34(2)(a) to (e), which makes the new minister’s powers seemingly meaningless.
Mantashe still has power through Section 35(4), allowing him to make regulations regarding different sources of new energy generation, generated from each source, to whom it may be sold, and to hold a competitive tendering process.
However, sections 34(1) and 35(4) are thus incredibly similar, Van der Poel noted, adding further confusion.
Moreover, the Electricity Regulations on New Generation have not changed, meaning that the power to draw up an Integrated Resource Plan (IRP) remains with Mantashe
The IRP outlines the sources of South Africa’s intended new energy generation over the long term (coal, gas, renewables) and details what percentages they will contribute.
With his limited powers, Ramokgopa can issue new determinations under the existing IRP to procure power for the holes in South Africa’s current electricity generation. However, Mantashe has already issued determinations for coal, solar, wind and nuclear procurement.
Regarding responsibilities not legislated for, Ramokgopa will oversee the National Energy Crisis Committee’s work, deal with Eskom’s board and management to end load shedding, and guarantee that the Energy Action Plan is dealt with speedily.
However, there is no clarity on how the minister’s performance will be judged – his Key Performance Indicators – or how long his appointment will last.
Van der Poel added that the uncertainty over the new proclamation could also lead to conflicts with Minister of Public Enterprises Pravin Gordhan, who oversees Eskom.
Although Ramokgopa has indicated that he wants to add renewable energy to South Africa’s generation capacity, he has also called for the life extension of the country’s coal-fired power plants, causing further contestation regarding the Just Energy Transition.
Read: This load shedding trend has completely reversed in South Africa
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