20 October 2022
Short-term power supply guarantee
19. Mr Z Mkiva (Eastern Cape: ANC) to ask the Deputy President:
Whether, in light of the recent escalation of load shedding and its continued adverse impact on the economy and the Economic Recovery Plan, the Government has considered developing any interventions to guarantee the short-term power supply and support businesses that have been adversely affected by load shedding, especially small, medium and micro enterprises; if not, why not; if so, (a) what progress is the Government making in building (i) partnerships with the energy industry to address the short-term energy challenges and (ii) a cogent alternative source of energy supply plan while ensuring that load shedding is not reversing the recovery of the economy from the impact of Covid-19 pandemic and (b) what are the further relevant details? CO835E
REPLY:
Honourable Chairperson
As a government, we are cognizant of the negative impact of load-shedding on the country’s economy and the inconvenience and hardship it causes the country.
As a result, government has been working with the energy sector to remove a cap on private generators, increase the number of Request for proposal issued to the private sector, and contract for more megawatts from existing independent power producers.
Since its revival in 2018, the renewable energy programme has connected about 2,000 MW of solar and wind energy to the national grid, courtesy of Bid Window 4. The Bid Window 5 will contribute over 2,600 MW by 2024. The Bid Window 6 will procure some 5,200 MW of wind and solar energy.
The government has also created a regulatory environment that is conducive to opening up the market for alternative power generation. For instance, regulatory authorities have relaxed the licencing threshold for generation projects from 1 MW to 100 MW. This means that power plants with a capacity of less than 100 MW can supply electricity to a wide range of users, like businesses and homes.
Updated regulations allow municipalities to procure power independently. Eskom would also buy surplus power from existing producers like mines, factories, malls, and other private generators. Eskom will also import additional power from neighbouring countries through the Southern African Power Pool arrangement.
Apart from the external but associated factors we have outlined, Eskom itself as a business entity has been making adjustments, and to date the following interventions have been implemented:
• Eskom is aggressively maintaining its power station fleet. Maintenance budgets have increased to improve operational reliability, and bureaucratic guidelines have been relaxed. This should lessen Eskom’s difficulties in purchasing the necessary equipment and services.
• Eskom is embarking on a significant recruitment drive to employ highly competent technicians, including former plant managers, engineers, and so forth. Eskom has recognised that the “ground zero” of its operations is at the plant level, hence its renewed focus on attracting skilled personnel for these sites.
• Eskom has proposed adding an additional 8, 000 MW of clean energy projects to the grid over the next 2-5 years as part of its just energy transition strategy. This is a mix of greenfield renewables and gas projects, as well as coal power plant repurposing.
• The government is also considering various changes that will speed up the acquisition of independent power producers and reduce further red tape. When all the necessary tasks have been done, an announcement will be made about this.
• To address demands, Eskom has proposed building 8,000 kilometres of transmission lines over ten years. Eskom has proposed financing and regulatory support for land and servitude purchase as part of the Just Energy Transition.
• Eskom has proposed a holistic approach to decarbonisation and environmental compliance by accelerating the retirement of ageing and unreliable coal-fired power plants, as part of its commitment to the country’s Just Energy Transition Plan. This will be done in a manner that is both socially and environmentally responsible.
• Contracts with six independent power producers have been concluded this year, and an additional two projects are expected to be concluded before December 2022. Eskom will purchase power from the independent power producers and provide it to electricity consumers.
Honourable Chairperson
Since the announcement that was made by the President on July 25, 2022, we have taken decisive action to capacitate the leadership at Eskom through the appointment of a new board with effect from October 1, 2022.
As Cabinet, we are confident that the technical expertise within this Board will ensure that as a country, we attain the target of improving Eskom’s Energy Availability Factor from the currently undesirable levels that are below 60 percent to a stable level of 75 percent.
We remain optimistic that the operationalization of these interventions under the guidance of the new Board will yield positive results that will lower, and eventually end the current challenge of load-shedding, which is crippling our economy.
Thank you very much!
*Protection of Eskom infrastructure*
20. Mr D R Ryder (Gauteng: DA) to ask the Deputy President:
As the Chairperson of Eskom Political Task Team, what action is Eskom taking to (a) protect its infrastructure and (b) ensure that damaged infrastructure is replaced promptly as the current spate of load shedding is exacerbating an already severe problem of such infrastructure (details furnished)? CO840E
REPLY:
Honourable Chairperson,
Eskom has adopted an integrated security approach, in partnership with law enforcement agencies, to address criminal activities specifically relating to critical infrastructure that is enabling the organisation to generate, transmit, and distribute electricity.
In order to do this, Eskom keeps an eye on hotspot areas every day. It uses these patterns to keep an eye on its security and send possible early warnings to different parts of the business.
Eskom has taken the following steps, along with the government, to protect our vital electricity infrastructure:
• The Joint Operations Centre located at Eskom MegaWatt Park has brought in added support from specialised SAPS units and the Directorate of Priority Crime Investigations as well as other specialised units such as Provincial Essential Infrastructure Task Teams, nationally;
• The National Security Command Council and the National Intelligence Coordinating Committee are also kept up to date on infrastructure crime issues and trends.
• South African Revenue Services, the Special Investigating Unit, the South African Police Service, the Department of Home Affairs, the National Prosecuting Authority, and mining houses sometimes work together on high-priority projects.
• Eskom has also reported that cases handled by the SAPS are being tracked on a regular basis; and
• Crime reporting mechanisms, including informer and whistle-blower reporting systems are in place.
Eskom has analysed all National Key Point sites and is installing smart technologies at generation power stations. Helicopters and drones are utilised in isolated areas where criminal networks still target infrastructure.
While protecting critical infrastructure, regulatory and legislative changes should address the scrap metal industry and non-ferrous metal demand.
The research results of a study commissioned by Department of Trade, Industry and Competition, were presented to government for consideration. Subsequently, the draft policy proposals were gazetted for public comment in June 2022. Before the year ends, Cabinet will consider for approval the final draft policy and proposal.
Our work in protecting critical infrastructure has not been limited to Eskom. We are taking lessons from our response to Eskom and replicating it across other critical infrastructure. This fits with making sure all of our efforts to grow the economy are long-lasting.
Honourable members can rest assured that infrastructure crimes and their effects are getting more attention to bring to justice offenders.
We call upon all communities to also play their part by partnering with the government and protecting all water, electricity, roads, and schooling infrastructure that is located in their localities. As we collectively do this, we also ensure the accessibility of services for our children and future generations.
Thank you very much!
*Communal Land Administration & Tenure Reform Summit*
21. Ms L C Bebee (KwaZulu-Natal: ANC) to ask the Deputy President:
Whether, since the Communal Land Administration and Tenure Reform Summit that was held in 2022, the Government has considered how the recommendations of such a summit will assist in fast-tracking land reform and guide the effective coordination of government programmes that are geared to accelerate land reform and agricultural support; if not, why not; if so, (a) what are the key national policy and legislative framework recommendations that were made at such a summit (details furnished) and (b) what are the further relevant details? CO836E
REPLY:
Honourable Chairperson,
Indeed, in May of this year, the government held the Communal Land Administration and Tenure Summit.
This was the culmination of years of work by government and a wide range of stakeholders from different parts of society, especially those from the institution of Traditional and Khoi-San Leadership.
The highlights of the summit must be understood in the context of the ongoing programme of land reform in South Africa, whose aim is to ensure equitable access to land for all as stated in our Constitution, in particular Chapter 2 (25).
The summit’s resolutions included, among other things, the following:
• Making laws about communal land ownership that define the different ways people can own land in both rural and urban areas;
• Introduction of legislation and other measures to protect communal land from being bonded, alienated, lost, or sequestrated by financial institutions and any other developers; and
• Government should empower Traditional Councils to establish or use legally recognised communal land administration structures and support them to successfully administer communal land under their jurisdictions. This encompasses institutional, budgetary, staff, and conflict resolution responsibilities and training.
These outcomes also brought to light different points of view and new issues that will need more attention when policies and laws are made about land administration and tenure reforms in communal areas.
The Inter-Ministerial Committee on Land Reform and Agriculture has also sent a team of Deputy Ministers of Agriculture, Land Reform, and Rural Development; Traditional Affairs; Justice and Constitutional Development; Forestry, Fisheries, and Environment; and Human Settlements to keep talking with traditional leaders and figure out how to move forward with the resolutions.
Where there is not complete agreement, more consultations will be held to get more ideas.
Under the leadership of the Deputy President, the Inter-Ministerial Task Team on Matters Raised by Traditional and Khoi-San Leaders has also reached out to Traditional and Khoi-San Leaders all over the country. During these meetings, we also discussed issues that came up at the Summit with the Traditional and Khoi Leaders.
In terms of implementing this work, draft policies are already being developed by the Department of Agriculture, Land Reform, and Rural Development in response to the review of Communal Property Associations, following consultations by the department with various provinces, under the leadership of the Minister of Agriculture, Land Reform, and Rural Development.
While the outcomes of the Summit are being processed through the Inter-Ministerial Committee on Agriculture and Land Reform, other related matters that have been raised during our engagements with Traditional and Khoisan leaders will be submitted to Cabinet in line with government processes.
These outcomes will subsequently be communicated again to all Traditional and Khoisan Leaders.
Thank you very much
*Removal of ESKOM CEO from office*
22. Ms M O Mokause (Northern Cape: EFF) to ask the Deputy President:
(1) Why the Chief Executive Officer (name furnished) of Eskom has not been removed from office despite failing to ensure that there is reliable and affordable electricity;
(2) whether the Minister of Public Enterprises has provided the newly-elected board of Eskom with a clear mandate regarding the level of capability and management experience that is necessary to guarantee Eskom with affordable power and reliable generation capacity; if not, why not; if so, what are the relevant details? CO838E
REPLY:
Honourable Chairperson,
We are pleased that for the first time since 2018, all 13 vacancies on the Eskom Board have been filled. The new non-executive directors collectively bring engineering, energy policy and delivery, and accounting expertise.
The Board’s mandate is based on an existing shareholder agreement. Because of the load-shedding crisis and other changes in the electricity supply industry, this agreement will be looked at again.
So, it is up to this newly appointed board to re-evaluate the performance of Eskom’s Chief Executive and other members of Eskom’s executive management and, if needed, send their suggestions to the shareholder representative.
The board will also focus on problems with power generation and other energy-related issues like procurement, hiring former and experienced Eskom workers, and fighting fraud and corruption.
In order to show that the government is still committed to good governance, we believe that a competent, experienced, and capable board has been chosen to set up clear mechanisms to hold the executives accountable.
It is our expectation that the board is empowered to run the affairs of Eskom in a diligent manner and adopt zero tolerance for poor performance, corruption, abuse of power, dishonesty, and conflicts of interest whenever such arise.
This includes actions that try to undermine our efforts to build an energy utility that is financially stable and geared toward meeting its development imperative.
Thank you very much!
*Community members in tribal land*
23. Mr C F B Smit (Limpopo: DA) to ask the Deputy President:
As leading government effort to fast-track land reform and the co-ordination of Government programmes to accelerate land reform and agricultural support, what are his responsibilities in terms of community members that are living on tribal land regarding their (a) welfare, (b) rights, (c) ownership and (d) dignity in terms of the Constitution of the Republic? CO841E
REPLY:
Honourable Chairperson
During the last financial year, the Minister of Cooperative Governance and Traditional Affairs worked to improve the well-being of traditional communities by strengthening the laws and policies that govern the Institution of Traditional Leadership.
The government now can focus on economic development in traditional communities while standardising support for Traditional Leadership across provinces.
In addition to the support provided by line departments to communities on communal land, priority programmes like Rural Invest are being championed to deliver sustainable social and economic development initiatives in rural areas.
In this regard, the Inter-Ministerial Task Team on Traditional and Khoi-San Leaders has been in continuous engagement with the Institution of Traditional Leadership to source their perspectives on how the government should improve the lives of people living in communal lands among other things.
Honourable Chairperson,
To further ensure that communal land is productively utilised by beneficiaries, the government is paying attention to the provision of effective post-settlement support.
In this regard, through the Inter-Ministerial Committee on Land Reform and Agriculture, we are focusing on improving coordination of integrated post-settlement packages to beneficiaries of land, including finance, infrastructure, and access to water resources for development.
As government, we are still seized with the bigger responsibility of accelerating land reform to achieve restorative justice and social inclusion, especially for people living in traditional communities or on communal land.
While our land reform has encountered challenges and has not exceeded our expectations, significant progress has been made in restitution and redistribution of land to its rightful owners in a way that restores dignity and justice to those who were dispossessed.
The Department of Agriculture, Rural Development, and Land Reform is finalising the Communal Land Tenure Policy to address the long-standing issue of communal land administration, ownership, and security of tenure of persons and communities as stated in Section 25(6) of the Constitution.
Municipalities in tribal land regions must include projects in their Integrated Development Plans to release suitable and well-located agricultural land for productive use, distribute land for human settlements, and provide beneficiaries with fencing, equipment, markets, and finances under the National Spatial Development Framework.
Government programmes will address service delivery concerns, land reform blockages, local economic development, and the welfare of all South Africans, whether they live in urban or tribal communities.
Thank you very much!
*ICT services in rural communities*
24. Mr M E Nchabeleng (Limpopo: ANC) to ask the Deputy President:
Whether the Government has undertaken any assessments and/or audits of the progress that has been made in expanding access to information and communication technology (ICT) services in the rural and township communities; if not, (a) why not and (b) what interventions is the Government putting in place to expedite ICT connectivity in the rural and township areas to stimulate and support the rural and township economy; if so, (i) what progress is the Government making in expanding access to the internet and ensure the connectivity of rural and township communities and (ii) what are the further relevant details? CO837E
REPLY:
Honourable Chairperson,
Part of the fragilities that the COVID-19 pandemic has exposed is the need for the government to fast-track its programme for bridging the digital divide.
To this end, the government is committed to ensuring that everyone has access to information and communication technology infrastructure that will improve their lives.
Research done by the Independent Communications Authority of South Africa in March 2022 shows that rural and township communities need better access to information and communication technology services.
In this regard, we have made headway in the implementation of the National Broadband Policy, which aims to deliver affordable, high-quality, high-speed broadband connectivity to all South Africans.
In order to advance National Broadband Policy, the government is implementing the South African Connect programme, which has been split into two phases.
The first phase, as a pilot, has been rolled out in eight district municipalities across seven provinces, which include: Vhembe in Limpopo, Gert Sibande in Mpumalanga, Pixley ka Seme in the Northern Cape, Thabo Mofutsanyane in the Free State, Umgungundlovu and Umzinyathi in KwaZulu Natal, as well as Dr. Kenneth Kaunda in the North West.
Broadband connectivity has been offered at 970 government facilities, including schools, hospitals, and administration offices.
After the first phase, Cabinet amended and approved the South African Connect programme in January this year.
Following its approval, the revised model is focused on the following key interventions for phase two of the programme, which is being implemented over a period of three years:
• To connect 18 036 schools, 3 873 health facilities, and 8 241 tribal authority sites through social obligations imposed as licence conditions on mobile operators who recently acquired the auctioned mobile broadband spectrum;
• To connect 15 691 government sites, including 949 libraries and Thusong Centres through the State Information Technology of South Africa; and
• To connect underserved South African communities and households to the internet by deploying 33 400 Wi-Fi hotspots in collaboration with SMMEs and Internet Service Providers.
The 52 district municipalities will implement this programme, focusing on rural and township areas. This work will significantly reduce the digital divide.
The relevant ministries, including CoGTA, are now planning government institution infrastructure and family and community Wi-Fi hotspots.
Our government strives to ensure that geography does not really prevent people from obtaining information and using the Internet, which is crucial for education, training, and economic growth in developing countries.
Digital transformation, including preserving digital and network infrastructure, can empower rural and township communities generate wealth and eliminate unemployment and poverty. We will connect even the most remote rural communities to improve their quality of life.
Thank you very much!
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