A long long time ago the Nationalist Apartheid Government of South Africa embarked on a ‘grand plan’ to nationalise the production and distribution of electricity in South Africa via EksDom Eskom. The reasons were probably around centralised control of a basic service demanded by the voters. After all if you, as the government of the day, control and successfully deliver your citizens basic needs then surely they will continue to vote for the devil that they know in preference to the devil that they don’t?
Why do you think all of our public servants were dyed in the wool Nationalist Party supporters? A twist of fate, a blip in statistics? No – they were chosen as they toed the party line and, in turn, were ‘forced’ to continue to vote to keep their masters in power just so that they could continue in their fat cat jobs.
Not much has changed then, has it?
Back to Eskom and the centralising of electricity generation and distribution.
Before Eskom and the Nationalist Party push to become the electricity provider of choice we in Port Elizabeth had two power stations that belonged to the municipality – actually to the ratepayers: One in Swartkops and one at the bottom of Mount Road. Much like people utilising Solar PV these days, the Port Elizabeth Municipality also occasionally relied on the national grid to supplement electricity demand.
Why was this a good thing?
- Electricity prices were kept in check
- Electricity Infrastructure was kept in very good condition
- Clear definable earnings from the sale of electricity were utilised for the electricity department only.
What happened?
Simple enough – Eskom promised cheaper electricity from a larger player and priced all municipalities out of the market.
How?
When you can dip into taxpayer money to finance a ‘grand plan’ you can hold out for longer until you get your way.
Which leads us to the saddest days in the life of the Nelson Mandela Bay Municipality:
The day that the Mount Road Power Station was mothballed and the day that the Swartkops Power Station was sold – cynical rumour has it that the buyer sold the equipment left inside for more than the purchase price!
One good thing:
The North End Lake, which was used as a water supply for the Mount Road Power Station, is now enjoying a revival as a sailing venue. See: Going Back to our Sailing Roots.
And now we come FULL CIRCLE in a lesson learned from the Nationalist Government:
It would appear that our Government of the day has realised that centralised control of a basic service is about to cost them power (pun).
In a first shot, on 19 February 2019, at the Africa Energy Indaba in Sandton, Minister of Energy Jeff Radebe said; “The solution to South Africa’s energy crises and mounting municipal debt to Eskom – which stands at over R17 billion – is for municipalities to generate their own electricity.” Good news for the renewable energy industry.
The situation for Eskom and the country is even more dire in light of government setting aside R23 Billion a year to ‘assist’ Eskom going forward.
With reference to the Electricity Regulation Act Radebe said that through this act his department provides the policy and regulatory framework for municipalities to develop their own generation and alternative energy systems.
“In November 2017, we promulgated amendments to Schedule 2 of the Electricity Regulation Act, relating to circumstances under which a generation licence may not be required. The Schedule 2 amendments address the constraints related to licensing of potentially hundreds of thousands of rooftop PV systems, biogas and other small scale embedded generators. Critically, we provide the policy and regulatory framework for municipalities to develop their own generation and we enable the orderly development of alternative energy systems, which municipalities are developing already anyway,” concluded Radebe.
At present the regulations are an ever changing minefield for operators, installers, producers, consumers and municipalities. What is needed is absolute clarity on what can be done by persons wishing to generate their own power from renewable energy. Read – Implications of DoE’s amendments to the Electricity Regulation Act – for a good attempt at clarity.
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Alan Straton
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