The Organisation Undoing Tax Abuse (OUTA) notes that Minister Joemat-Pettersson is allowing Eskom to drive a new Nuclear build program, in the absence of an updated and highly credible Integrated Resource Plan (IRP) on Energy.
“An updated IRP is 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on new energy build programs to motivate Eskom’s Nuclear and New Coal power production projects, have made use of outdated demand and technology pricing of the IRP 2010-2030 report,” says Wayne Duvenage, OUTA’s Chairperson.
The latest study by the CSIR, compiled by Dr. Tobias Bischof-Niemz, Jarrad Wright, Joanne Calitz and Crescent Mushwana, clearly shows that now 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.
Eskom’s executives under the leadership of Brian Molefe now need to explain, why they are holding back on signing agreements with the Renewable Energy Independent Power Producer Procurement Program. 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. 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.
This new information on South Africa’s ability to source is 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,” says Duvenage. “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.”
OUTA will be presenting its coordinated civil society call to Minister Joemat-Pettersson to halt all future new energy requirement decisions, until the credible, transparent and rational IRP update process has been conducted, failing which the minister may be accused of being remiss in her duties and responsibilities to the nation.
Alan Straton
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