[ Home ] [ Speeches & statements ]

27 June 2008

The President convened the first meeting of the National Stakeholder Advisory Council on Electricity (NSACE) today. The Council was established by the National Electricity Summit held in May. It comprises senior leaders from the four Nedlac constituencies that is, government, business, community and labour and will be chaired by the president.

The meeting agreed that, while there has been a savings of around four percent in electricity usage overall, it is imperative to do more. Otherwise inclement weather could cause a shortfall in the coming weeks, while the major users, mostly in the minerals value chain, will continue to bear the burden of the emergency in the form of reduced supply.

Public buildings retail malls, office and government buildings – as well as households can make the bigger savings. They should make a stronger effort in the coming weeks in order to relieve the burden of the emergency on the economy and society, in particular by:

1. Turning off appliances, including geysers, and light bulbs when not in use.
2. Using more energy-efficient technologies, starting with compact fluorescent light bulbs (CFLs).
3. Reducing use of heating and cooling equipment to a minimum.

While we appreciate the savings that have been attained by the industry, we still believe more can be achieved through efficiency in production and maintenance. Higher electricity prices have become unavoidable, although it is agreed that government should mitigate the impact on poor households and communities. Households can reduce their bills by limiting electricity use.

The stakeholders agreed that they would use all their media, platforms and processes to encourage greater electricity savings. Providing adequate information on savings to relevant stakeholders and consumers is critical, and the council requested that government and Eskom report back on the success in reducing usage on a regular basis.

In addition, the meeting agreed on the importance of fast-tracking a protocol for new connections and measures to encourage increased generation of electricity. Business expressed optimism that there would be a significant contribution through co-generation projects in the coming months. The parties agreed that they would seek to accelerate environmental impact assessments required as part of this process.

The meeting today confirmed that the NSACE will act as the primary location for high level formal consultation with stakeholders in respect of policy implementation. Its main functions are to:

* develop communication messages about the electricity emergency
* facilitate communication between stakeholders and government
* monitor implementation of programmes, policies and decisions and provide feedback on challenges being experienced and possible solutions.

The NSACE adopted an action plan to provide support, as appropriate, for:

1. Increasing energy efficiencies and savings.
2. Increasing the supply of electricity, including fast tracking co-generation, supporting Eskom's programme to build new capacity and improve its skills base, and enhance maintenance across the electricity supply chain,
3. Pricing of electricity , including monitoring and advising on the new tariff directives at Eskom and local government level, and helping to control Eskom cost drivers such as coal.
4. Engagement with government on proposals for load shedding, rationing and new connections for large projects.
6. Issues arising from the recent National Energy Regulator of South Africa (NERSA) Inquiry into the National Electricity Supply Shortage and Load Shedding.

The NSACE will work closely with the National Electricity Response Team (NERT) and its outcomes will amongst others feed into the Inter-Ministerial Committee on Energy as well as Nedlac.

It is expected that the monitoring and communication roles of the NSACE will lead to a broader and better understanding of the full spectrum of electricity needs and demands in the country, thereby ensuring that the required action is taken, including the required dispensation for poor communities. It is believed that the NSACE will therefore contribute to the necessary co-operation and commitment from the different stakeholders to ensure the minimum disruption to achieving the country's economic growth and development potential.

Enquiries:
Thabang Chiloane
Cell: 082 888 8783

Herbert Mkize
Cell: 082 495 1341

Issued by: The Presidency
27 June 2008