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August 26, 2024

Ramaphosa says government needs to ensure energy transition does not contribute to energy poverty

President Cyril Ramaphosa says free basic electricity subsidy for indigent households is one of the most important policies they implemented
Photo: The Presidency

President Cyril Ramaphosa has affirmed government officials, including municipal mayors, at the inaugural Just Energy Transition Municipal Conference in Midrand, Gauteng, that Just Energy Transition will allow the country to improve service delivery at a local government level, which has been confronted by numerous issues.

 

MUNICIPALITIES ARE ELECTRICITY SERVICE PROVIDERS

 

Ramaphosa said municipalities own and operate approximately half of South Africa's electricity distribution grid and facilitate universal access to electricity. "One hundred and sixty-five municipalities are electricity service providers. Through the Integrated National Electrification Programme grant, municipalities are responsible for addressing the electrification backlog," Ramaphosa said. He said it is essential for municipalities to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses and industry. "One of the aims of this conference is to unlock the institutional arrangements required to drive the decarbonisation effort."

 

NO TO ENERGY POVERTY

 

Ramaphosa said the Just Energy Transition Implementation Plan approved by Cabinet last year includes a dedicated municipal portfolio roadmap. "Municipalities are now able to purchase power directly from independent power producers and establish their own power-producing entities.I recently signed the Electricity Regulation Amendment Act into law. The Act paves the way for a new, competitive electricity market. The reforms contained in the law must help to speed up decarbonisation. But more than that, they must result in a better deal for households and businesses." He said the national climate change effort must not come at a higher cost for electricity users. "South African households, like many around the world, are battling with the rising cost of living, including the cost of energy. We must therefore ensure that the energy transition does not contribute to energy poverty. It must not deepen inequality. The free basic electricity subsidy for indigent households is one of the most important policies we have implemented to tackle poverty since the advent of democracy," he added.

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