Debt relief a boost for Eskom

Eskom interim Group Chief Executive, Calib Cassim, says government’s commitment to take on at least R254 billion of the power utility’s debt will allow it to put more focus on dealing with the current generation capacity challenges it faces.

Cassim was speaking at a media briefing where various Ministers provided an update on government’s response to the electricity crisis and the regulations of the National State of Disaster related to energy.

“That decision by the Minister of Finance [Enoch Godongwana] that Eskom doesn’t have to borrow for the next three years allows Eskom to release CapEx [capital expenditure] funds three years in advance not only for generation but for transmission and distribution.

“...[With] the flexibility that we now have on procurement within the governance rules, there should be no excuses from an Eskom perspective, and from a generation perspective... [I don't see] why load shedding [should not be] reduced going forward.

“We must not accept Stage 6 [load shedding], we need these stages to come down,” he said.

Head of the Project Management Office in the Presidency, Rudi Dicks, said the debt relief will also allow Eskom to procure more generation capacity.

“The changes that we’ve made around new generation capacity, particularly through the IRP [Integrated Resource Plan], are that Eskom is not the only entity responsible for the build of new generation capacity.

“We have the ability to procure new generation through IPPs [Independent Power Producers]. We’ve also changed schedule 2… so it’s important to understand that this is not necessarily new build by Eskom but the ability for Eskom to procure additional generation,” he said.

Turning to issues related to the National State of Disaster regulations, Dicks said the regulations allow for government to open a one stop shop for businesses to register to apply to build new generation projects in an expedited manner.

“That one stop shop is currently being formed at the Department of Trade, Industry and Competition, where there’s an existing one stop shop for registration of businesses.

“We are in the process of finalising all the necessary requirements for the establishment of that, including alignment with departments, having systems in place and ensuring that we have an agreement across the entire system of institutions, entities and government that are required to provide permitting, authorisations and requirements for registration.

“As soon we set [it up formally]… we will launch it and we will allow for smoother process for energy applications to be processed through one entry point, with a backend system to ensure a streamline and quicker process for approvals so that we can get as quickly as possible to construction and have those megawatts dispatched onto the grid,” he said.

Source: South African Government News Agency

Murder of traditional leaders an attack on the State, says Dube-Ncube

KwaZulu-Natal Premier, Nomusa Dube-Ncube, says the killing of traditional leaders and Izinduna is an attack on the State, as it threatens to destabilise an institution critical to the stability and order of society.

“It is also a symptom of the poison that has entered the core of our societal values, where crime has become the order of the day and where murders go unresolved,” Dube-Ncube said

Dube-Ncube said in a meeting with the South African Police Service in January 2022, it emerged that the police are investigating 51 murder cases going back to 2012, and to-date, 30 people have been arrested, while 18 cases are still pending in court.

“In two of these cases, the accused were found guilty. Six remain undetected,” Dube-Ncube said.

Briefing media following a Provincial Executive Council (EXCO) meeting, Dube-Ncube said possible motives behind the killings of traditional leaders include the struggle for chieftaincy, land disputes, family disputes and even taxi-related disputes.

She said the province of KwaZulu-Natal takes the safety and security of Amakhosi and Izinduna seriously, and during meetings with Provincial Commissioner, Lieutenant-General Nhlanhla Mkhwanazi, EXCO made it clear that all stops must be pulled to end these murders.

“We have asked that the Security Cluster explore the feasibility of setting up specialised units such as a Traditional Leaders' Safety Unit, whose task will be to look after the safety of traditional leaders, especially those whose assessments reveal a security threat. We have many traditional leaders who have mobilised safety committees in their areas to work with police in the fight against crime.

“As announced in the State of the Province Address, we as the province through the Department of Community Safety and Liaison, we are establishing the Community Safety Intervention Unit which will focus on the safety of Amakhosi and Izinduna.

“This unit will conduct security analysis on Amakhosi and Izinduna; engage with law enforcement agencies to facilitate deployments and investigations. It will recommend tactical security measures to be taken and monitor intervention plans working with the SAPS,” Dube-Ncube said.

The Premier reiterated a call on all traditional leaders to collaborate and support government, as “we seek together to build a better KwaZulu-Natal for all.”

Backdated pay for Izinduna

Meanwhile, the Premier announced that the provincial government will start disbursing the funds for qualifying Izinduna, and they are going to receive their back pay.

She said the matter has been outstanding for quite some time and government has been seized with the task, not only restoring the dignity of traditional leadership institutions, but also adequately resourcing them as a way of affirming the role of traditional leadership institutions as a critical pillar of the systems of governance.

“We are moved by the fact that we have had a number of Izinduna who have passed on, who have been working with government to ensure the payment of Izinduna, even those that have passed on, receive their backdated payment.

“KwaZulu-Natal Treasury and the Department of Cooperative Governance and Traditional Affairs together with the Office of the Premier have been seized with this matter and had several engagements with national government with a view to making available the funds to meet this obligation,” Dube-Ncube said.

She said the province has about 2 229 Izinduna and are the majority in the country.

Source: South African Government News Agency

Minister Mondli Gungubele: National State of Disaster pertaining to the impact of severe electricity supply constraints

Opening Remarks by Minister Gungubele during the media briefing on the National State of Disaster pertaining to the impact of severe electricity supply constraints

Ministers present, Acting CEO of Eskom

Directors General present Members of various media houses,

Good morning and thank you for joining us.

We are here on behalf of Cabinet and the National Energy Crisis Committee (NECOM) to appraise the nation on regulations that will apply on the National State of Disaster pertaining to the impact of Severe Electricity Supply Constraints. As we all know these regulations come into effect after the National State of Disaster was gazetted. This was also announced by President Cyril Ramaphosa during his 2023 State of the Nation Address.

Following a sitting of the President’s Coordinating Council as well as a special sitting of Cabinet on the evening of Monday 27 February 2023, government gazetted the regulations, which give effect to the provisions of the National Disaster Management Act, Act 57 of 2002.

The National State of Disaster emphasises our determination to support and work with all South Africans and sectors of society negatively affected by the severe electricity supply. The regulations aim to assist, protect and provide relief to the public; protect property; prevent and combat disruption; and to deal with the destructive nature and other effects of the disaster.

We are taking necessary steps to stabilise the grid and as such:

The National State of Disaster In Electricity Crisis empowers government to implement necessary measures to prevent the escalation of load shedding and avert a possible national blackout.

The regulations empowers the national executive to work in close cooperation with the three spheres of government in ensuring that the following happens:

Today we are providing practical measures that we need to take to support businesses in the food production, storage and retail supply chain, including for the rollout of generators, solar panels and uninterrupted power supply.

We are confident that regulations will provide the extra-ordinary measures required to deal with our energy constraints. These regulations came into operation on the date of publication in the Government Gazette.

The lessons learnt during our successful fight against the global pandemic where extraordinary measures under the auspices of the State of the Disaster legislation assisted in saving lives and livelihoods, have been at the heart of current efforts to strengthen our response as government to the deteriorating energy situation in our country. These regulations are to ensure that the country does not get into a state of emergency and not to undermine any social liberty or the rights of individuals or groups in any way

As we set out to mobilise resources to support and address the disaster, we are putting measures in place to safeguard these financial resources. Government, working with all stakeholders will ensure that all the resources we mobilise are used for their intended purposes and reach the intended recipients.

Various oversight structures like the Auditor-General and Parliament as set out in the regulations will monitor the use of funds. Specifically, the Auditor General will undertake real time audits whilst reports to Parliament have to be submitted by respective institutions in the month where expenditure took place and also reports have to be published. Our focus is to ensure that there is value for money, transparency and accountability as the projects are costed and implemented.

Government calls on everyone to be circumspect in what they post and share online, including diligence in verifying credibility of the source of their news. By simply asking a few critical questions and consulting widely available resources, we can stop the scourge of false and fake news which create unnecessary panic and instability. The official government website https://www.gov.za/ is a one-stop portal for news and information. We all have a duty to act responsibly and in the interest of society

We work hard and understand the plight all those who have been affected by the devastation of the power outages. We appreciate the cooperation from all sectors and society at large as we respond this disaster. In this way, we can all ensure efforts that yield to the end of load shedding.

Thank you

Source: Government of South Africa

Work underway to hasten registration of bigger solar PV projects, battery storage facilities

The Department of Forestry, Fisheries and the Environment is in the process of hastening the applications related to authorisation permits and licenses required for energy generation, transmission and distribution, said Minister Barbara Creecy.

“I think it's important to say that solar rooftop installations don't require an environmental authorisation about bigger solar projects,” she said on Friday.

However, about bigger solar projects, she said the department is busy developing regulations that will allow solar photovoltaic (PV) facilities and battery storage facilities to go through an expedited registration process.

“We will be putting those regulations out for public comment soon and that, of course, would be an area of low environmental sensitivity.”

The Minister was speaking during a briefing chaired by the Minister in the Presidency, Mondli Gungubele to communicate gazetted regulations, which give effect to the National State of Disaster about the impact of severe electricity supply constraints.

This comes as President Cyril Ramaphosa declared the ongoing load shedding as a National State of Disaster to enable government to deal with the crippling power cuts.

According to Creecy, the department will make provision for her to issue directions related to the streamlining of applications and decision-making processes for environmental authorisations, waste management licenses and atmospheric emission licenses.

“What we are currently doing is that we are looking at developing directions that would enable expedited procedural requirements for requiring environmental authorisation,” she explained.

“So for example, allowing a process to be followed that is similar to the current basic assessment process, even for activities that may otherwise require the full scoping Environmental Impact Assessment (EIA) process.”

The department is also looking at shorter periods between the submission of an application and the submission of reports for decision-making and public participation, for example, 14 days as opposed to the existing 30 days.

“I think it's important to say that the regulations do not provide for exemptions from environmental law,” she stressed.

“It’s not our intention to start producing blanket exemptions from those provisions. I think we recognise that there may be certain instances where this is required, and on a case-by-case basis.”

However, the department will be advised by its legal practitioners on how best to deal with the situation.

Source: South African Government News Agency

Nkosazana Dlamini Zuma: National State of Disaster pertaining to impact of severe electricity supply constraints

Thank you for joining us as we unpack subsequent steps and the work unfolding, following the declaration of the national state of disaster, given the prevailing energy crisis. This declaration, as announced by the President during the State of the Nation address, was in response to the severe impact of the intermittent electricity supply across the country.

Eskom continues to experience several operational challenges that have inevitably affected the efficiency of power stations and ultimately the capacity to provide uninterrupted supply of electricity. Whilst addressing these challenges, the power utility was compelled to invoke load shedding at escalating stages (up to stage 6) to protect the national grid from a national blackout; the consequences of which would be catastrophic.

Notwithstanding the progress made to reduce the energy constraints, there is still a substantial impact the severe electricity supply constraint had on the economy and on society at large, especially if it went unmitigated and ultimately progressed to a total blackout. The anticipated prospects of a total blackout warranted the occurrence under the current circumstances to be perceived as a disaster, as envisioned by the definition of a disaster set out in Section 1 of the Disaster Management Act.

….all sectors of our country are negatively affected by the electricity challenges and it was therefore important to respond decisively to remedy the severe electricity supply constraints.

Ladies and gentlemen,

Taking into account that Section 26, read with Section 23 of the Act, assigns the primary responsibility to coordinate and manage the disaster in terms of the existing legislation and contingency arrangements to the National Executive, a special cabinet meeting considered all the inputs and reports that led to the classification of the disaster by the Disaster Centre.

I declared the National State of Disaster as designated under Section 3 of the Disaster Management Act, 2002 (Act No. 57 of 2002) ("the Act "), in terms of –

Section 27(1) of the Act, having recognized that special circumstances exist to warrant the declaration of a national state of disaster; and

Section 27(2) of the Act whereby I may, when required, make regulations or issue directions or authorize the issue of directions concerning the matters listed therein.

This National State of Disaster emphasises our determination to support and work with all South Africans and sectors negatively affected by the electricity supply constraints. Through the Disaster Declaration, effective and coordinated response across all spheres and other sectors will be enhanced, thus also allowing for mobilisation of resources, capabilities and technical expertise.

The state of disaster is enabling us to provide practical measures that we need to take to protect health, water, critical electronic communication, rail and ports infrastructure and support businesses in the food production, storage and retail supply chain, including for the rollout of generators, solar panels and uninterrupted power supply.

Having declared the national state of disaster, and after consultation with the relevant Cabinet members, I published the regulations which aim to protect and provide relief to the public and to deal with the destructive nature and other effects of the disaster by, among others;

minimising the impact of load shedding on livelihoods, the economy, policing functions, national security, security services, education services, health services, water services, food security, communications and municipal services, amongst others;

reducing and managing the impact of load shedding on service delivery to support lifesaving and specified critical infrastructure;

providing measures to enable the connection of new generation supply; and

providing measures to improve Eskom’s plant performance.

The Regulations emphasise the following:

Cooperation between spheres of government – meaning that the national executive must act in close cooperation with provincial, municipal and other organs of state to deal with the national state of disaster.

All institutions across government must, for the duration of the declared national state of disaster, within their available resources:

adopt energy saving measures to contain the effects of the disaster and prevent the escalation of the electricity supply shortfall;

ensure continuous operation of health facilities, water infrastructure and other specified essential infrastructure and services, including by installing alternative energy sources or other measures to provide an uninterrupted power supply;

release and mobilise available resources, including human resources, stores, equipment, ships, aircraft platforms, vehicles and facilities;

release their personnel for the rendering of emergency services, as contemplated in section 27(2)(b) of the Act; and

provide funds for this purpose, subject to affordability.

To augment the regulations, cabinet members may issue directions, for the purposes of giving effect to the objects of the disaster regulations. This can include:

disseminating information required for dealing with the national state of disaster;

granting of exemptions from load-shedding or reduced load shedding schedules to specified essential infrastructure and services where technically feasible, in alignment with the requirements and obligations of the System Operator and only to the extent that such exemptions or reductions would not result in an increased risk of higher stages of load shedding;

maintaining security and availability of the supply of goods and services during the national state of disaster;

implementing measures to remove impediments to the development or construction of new generation capacity;

streamlining and expediting application and decision-making procedures for regulatory processes related to energy generation projects, including designating a single department or institution to receive and coordinate the processing of applications or stipulating maximum timeframes for decision-making;

providing exemptions or expedited approvals under the Subdivision of Agricultural Land Act,1970 (Act No. 70 of 1970) and Spatial Planning and Land Use Management Act, 2013 (Act No. 16 of 2013) to authorise land use for energy generation;

requiring mobile network operators and broadcasters to issue public service announcements on the national state of disaster, at no cost to users;

streamlining the application and decision-making processes for environmental authorisations, waste management licences, atmospheric emission licences, condonations and exemptions associated with energy infrastructure and generation, transmission and distribution facilities, for the duration of the national state of disaster;

excluding upgrades, refurbishments, adjustments and repairs of existing energy infrastructure and existing generation, transmission and distribution facilities, from the provisions of the National Environmental Management Act, or any specific environmental management Act, or any regulations published in terms thereof, for the duration of the national state of disaster;

facilitating the sale of electricity generated by individuals, organs of state or private institutions to license distributors as defined in the Electricity Regulation Act 2006 (Act No. 4 of 2006);

issuing of rules or guidelines for licensed distributors to implement net billing and other mechanisms to facilitate small-scale embedded generation as well as wheeling of electricity;

facilitating the importation of electricity by Eskom from neighbouring countries and the conclusion of contracts relating to electricity imports, on an expedited and negotiated basis in accordance with the emergency procurement procedures outlined in regulation 6; providing for the recruitment or placement of skilled personnel or appointment of Original Equipment Manufacturers by Eskom as required to deliver the Generation Recovery Plan on an expedited basis;

facilitating access to servitudes on public and private land for Eskom and Eskom group companies for the purposes of expanding the national transmission network, in terms of the Expropriation Act, 1975 (Act No. 63 of 1975);

requiring water boards and municipalities to revise the minimum operational levels for reservoirs; increase water treatment and reservoir storage capacity; revise water treatment schedules to maximize water treatment while electricity is available or other measures; or take other measures to ensure security of water supply;

exempting water boards or municipalities that are water service authorities from penalties for exceeding the notified maximum demand during periods of load shedding;

enabling effective co-ordination between state departments, Eskom and other relevant entities and institutions to ensure security of electricity infrastructure;

taking any other steps that may be necessary to prevent an escalation of the national state of disaster, or to alleviate, contain and minimise the effects of the national state of disaster; or

taking steps to facilitate international assistance aimed at alleviating, containing or minimising the national state of disaster.

1. All directions issued in terms of these Regulations shall continue to apply for the duration of the national state of disaster unless, varied, amended or withdrawn by the Cabinet member responsible for such directions.

2. An activity which is permitted by an authorisation or exemption granted in terms of regulations or directions issued during the national state of disaster remains lawful notwithstanding the termination of the national state of disaster.

3. Emergency procurement procedures will be allowed, this will include:

Emergency procurement for public institutions is subject to—

the Public Finance Management Act, 1999 (Act No. 1 of 1999), and the applicable emergency provisions in the Regulations or Instructions made under section 76 of that Act;

the Municipal Finance Management Act, 2003 (Act No. 56 of 2003), and the applicable emergency provisions in the Regulations made under that Act;

the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000).

The Auditor-General shall conduct real time audits and report on the accounts, financial statements and financial management of all emergency procurement undertaken during the national state of disaster.

Accounting officers must take steps to ensure that anti-corruption measures are implemented during emergency procurement.

Any procurement undertaken using the emergency provisions referred to in (a) and (b) during the national state of disaster must be published and reported to Parliament within the month of the expenditure by accounting officers and authorities, including the details of such procurement and the reasons for deviating from normal procurement procedures.

Ladies and gentlemen

The impact of load shedding has led to economic and social damages, public health and safety threats as well as hindrances to basic service delivery. Initial analysis by SALGA indicates that cities are incurring an overall average loss of income from between R3 to R6 million per stage load shedding per day. This is substantially high, unsustainable, and unaffordable.

Working with SALGA, we will be conducting an assessment of the impact of load shedding on municipal services, electrical infrastructure, and finances.

It is our hope that we will work together with all stakeholders to resolve this crisis and to further call on all South Africans in all sectors of the economy and our communities to help end load shedding by conserving energy, adopting energy-efficient practices, and supporting renewable energy initiatives.

In conclusion, we need to recognize that the current energy crisis are a complex issue with no easy solutions. By working together, we can find sustainable solutions to ensure that South Africa has a reliable and sustainable energy supply for years to come.

I thank you.

Source: Government of South Africa

Total tax revenue collection increased over five years

The South African Revenue Service (SARS) has over the past five years increased the total tax revenue collection.

Over this period, the revenue collector said, collection has increased from R1 216.5 billion in 2017/18 to R1 563.8 billion in 2021/22, representing a compound annual growth rate (CAGR) of 6.5%.

“This is significantly lower than the CAGR of 8.4% attained in the previous five-year period from 2012/13 to 2017/18,” National Treasury and the South African Revenue Service (SARS) said in a joint statement.

The figures are contained in the 15th annual edition of the Tax Statistics published by National Treasury and SARS on Friday.

The 2022 edition provides an overview of tax revenue collections and tax return information for the 2018 to 2022 tax years, as well as the 2017/18 to 2021/22 fiscal years.

“The economic recovery from the pandemic differs from previous negative shocks to the economy. After the 2008/09 global financial crisis, it was several years before tax revenue collections recovered to pre-crisis levels as a proportion of income and consumption.

“Due to the strong economic recovery from the pandemic, tax revenue increased by R314.1 billion to R1 563.8 billion for the year ending 31 March 2022,” Treasury and SARS said.

The document indicated that the recovery in tax revenue was noticeable across all tax types, but especially for corporate income tax due to the escalation in commodity prices, as well as domestic taxes on goods and services, that were most impacted on by the lockdown measures induced by the pandemic.

The document revealed that Personal Income Tax (PIT), at 35.5%, Value-added Tax (VAT), at 25.0% and Corporate Income Tax (CIT), at 20.7%, in aggregate remain the largest sources of tax revenue and comprise 81.2% of total tax revenue collections.

It also stated that the tax-to-GDP ratio moderated from 23.8% in 2019/20 to 22.3% in 2020/21, followed by an increase to 24.9% in the year under review.

Among the key points in the 2022 edition were that the Personal Income Tax (PIT) register had grown on an annual basis by 4.1% to 23.9 million individuals, by 31 March 2021.

“The number of individuals expected to submit income tax returns was 7.1 million for the 2018 tax year. This count decreased to 6.8 million for 2020 and then to 6.4 million for 2021, due to the increase in the threshold for submission of returns, over the past few years,” the statement read.

Chapter 2 of the document further revealed that the population of taxpayers who were identified to be auto-assessed in the 2020 filing season was significantly expanded to just more than 3.4 million.

Meanwhile, assessed data for individual taxpayers indicated that, of the 6 388 532 taxpayers expected to submit returns for the 2021 tax year, 5 508 525 (86.2%) taxpayers have been assessed.

Chapter 2 of the document on PIT, geographic, demographic and other analysis of the assessments of the taxpayers who had been assessed as at the end of August 2022 for the 2021-tax year showed that:

2 177 191 (39.5%) of assessed taxpayers were registered in Gauteng;

726 663 of assessed taxpayers lived in the Johannesburg Metro and were taxed on an average taxable income of R446 739;

1 432 673 (26.0%) of assessed taxpayers were aged between 35 to 44 years;

2 859 926 (51.9%) of assessed taxpayers were male; 2 613 130 (47.4%) were female and 35 469 (0.6%) taxpayers couldn’t be identified in terms of gender;

Assessed taxpayers had aggregate taxable income of R1.8 trillion and tax liability of R388.1 billion. The average tax rate was 21.4% compared to 22.3% the previous tax year; and

Income from salaries, wages and other remuneration as well as pension, overtime and annuities accounted for 77.2% of total taxable income.

Statistics in Chapter 3 regarding Company Income Tax (CIT) reveal that out of the 1 028 832 companies assessed as at August 2022 for tax year 2020, 21.4% declared a positive taxable income, whilst 53.2% had taxable income equal to zero and the remaining 25.4% reported an assessed loss.

Chapter 4 indicates that that in 2021/22, 80.0% of active Value-added Tax (VAT) vendors were companies and close corporations. They contributed 92.7% to Domestic VAT payments and accounted for 91.9% of VAT refunds paid out. Although individuals (sole proprietors) comprised 14.8% of active VAT vendors, they only contributed 2.3% of Domestic VAT payments and received just 1.2% of VAT refunds.

“As detailed in Chapter 5, Import VAT and Customs Duties accounted for 13.1% and 3.7% of the year’s total tax revenue respectively; resulting in a 16.8% aggregate, which was below the 17.2% average over the preceding five fiscal years.

“The combined share of these taxes to GDP increased to 4.2% from the preceding five-year average of 4.0%; with Import VAT and Customs Duties contributing 3.3% and 0.9% for the year respectively,” Treasury and SARS said.

For the 2020/21 fiscal year, the two said the largest contributors to Customs Duties, were Vehicles, Aircraft and Vessels (22.7%); Textiles and Clothing (17.3%); Food, Beverages and Tobacco (14.8%) as well as Machinery and Electronics (13.3%).

They said Import VAT was collected mostly from the importation of Machinery and Electronics (25.6%); Chemical Products (14.2%); Vehicles, Aircraft and Vessels (9.7%); Special Provisions (8.9%); Base Metals (7.5%); Plastics and Rubber (5.5%); Textiles and Clothing (5.0%) as well as Mineral Products (4.0%).

“The overall effective tax rate for Total Import Tax was 11.9% compared to previous year’s 12.0%. Key commodities with the highest effective Total Import Tax rates were Footwear and Accessories at 43.6%; Hides, Skins and Leather at 37.0% and Textiles and Clothing at 30.0%,” Treasury and SARS said.

Other Taxes and Collections provide information about taxes such as Capital Gains Tax (CGT), Transfer Duty, Mineral and Petroleum Resources Royalty (MPRR), Southern African Customs Union (SACU) payments and Diesel refunds.

In 2021/22, CGT of R16.2 billion was raised, of which R7.7 billion was attributable to individuals and trusts and R8.5 billion to companies. An aggregate of R189.3 billion has been raised since the introduction of CGT in October 2001, with R88.6 billion from individuals and trusts and R100.6 billion from companies.

“Mineral and Petroleum Resources Royalty (MPRR) payments by extractors grew quite substantially by R14.2 billion (100.0%) to R28.5 billion due to a significant improvement in the commodity prices such as platinum, iron ore as well as coal.

“This growth was at an exponential growth rate when compared to the growth achieved in the 2016/17 financial year of R2.1 billion (56.5%).”

The 2022 Tax Statistics documents are available on the SARS and National Treasury website at www.sars.gov.za and www.treasury.gov.za.

Source: South African Government News Agency

Minister Joe Phaahla on National State of Disaster pertaining to impact of severe electricity supply constraints

Remarks by Minister of Health Dr Joe Phaahla – media briefing on National State of Disaster pertaining to the impact of severe electricity supply constraints

The National Disaster Management Regulations will help to accelerate the implementation of immediate necessary practical interventions to minimize the impact of load shedding on the provision of essential health services.

These interventions will include the installation of required electricity infrastructure in priority areas where health facilities are imbedded on the grid with many Eskom clients, which makes it difficult to exempt facilities.

Other low-to-medium interventions include the rollout of generators, solar panels and uninterrupted power supply systems

The National Department of Health has been engaging with relevant authorities and external donors for financial support, including National Treasury to acquire these much-needed resources for health facilities and improving the quality of service-provision across the country.

The State of National Disaster will enable the government to exempt not only essential health services and infrastructure such as hospitals, but water treatment plants from load shedding because water supply gets affected in most health facilities as water pumps use electricity.

Whilst the situation has not necessarily led to the loss of life, this will bring about necessary intervention in improving the quality of health service provision at our health facilities.

In the Health Sector in particular, the regulations will assist in ensuring that the impact of load shedding on service delivery to support lifesaving and specified essential infrastructure is significantly reduced and better managed.

This will provide necessary protection to our health facilities to avoid deterioration of quality of service delivery at health facilities.

Department has provided Eskom with a list of 213 hospitals to be considered for possible exclusion, 76 have been exempted [26 directly supplied by Eskom and 50 by Municipalities].

Department to present energy mix plan with low-medium-long terms for implementation. This will include primary health facilities/clinics and Community Health Centres.

To work with CSIR to quantify the required size of solar energy and consider different kits of inverters with batteries for the Clinics and CHC’s. Unlike solar panels, these kits are lockable and not easy to steal.

This will enable the department to map out the roll-out implementation programme for the required solar energy solution for each health facility;

Department to also use this intervention to speed up the implementation of medium-to-long-term measures presented by Eskom on the exemption of 46 hospitals in various provinces at the estimated cost of R356 358 000

Source: Government of South Africa