Mayor Plato calls on Minister Mantashe to act now so that the City can proceed with buying independently produced power in future
21 January 2020
Following media reports that the ANC has endorsed a ‘market-friendly’ approach to address the electricity provision challenges facing South Africa, and which encourages local governments to procure their own electricity, I will be writing to the National Minister of Energy, Mr Gwede Mantashe, asking him as a leader in the ANC, to urgently clarify the regulations required for purchasing power from Independent Power Producers (IPPs). In addition, on behalf of the City of Cape Town, I will ask him not to oppose the pending court matter between the City, the Minister of Energy and the National Energy Regulator of South Africa (NERSA). This is an important case as legal clarification is required for the future purchase from IPPs to become a reality.
In December 2019 the Department of Mineral Resources and Energy issued a media release stating that it was seeking immediate measures to ensure security of energy supply. We responded and indicated that if the Minister were serious about implementing immediate measures, he would agree to the City’s request to purchase energy from IPPs.
Currently, the City is not allowed to purchase power from IPPs and it is forced to buy electricity primarily from Eskom. The City is a staunch proponent of more affordable, secure, cleaner and diversified energy sources. This has prompted the City to take the Minister and the National Energy Regulator of South Africa (NERSA) to court. Important legal clarification is also required.