Update by Eskom on its performance to date in 2024; briefing by the National Transmission Company of SA on the Transmission Development Plan; with Deputy Minister

The Committee convened in Parliament to receive an update from the Minister of Electricity and Energy, and Eskom on performance and financial issues in 2024 and plans going forward. The National Transmission Company of South Africa briefed the Committee on the Transmission Development Plan. Due to delays in the auditing process, Eskom had failed to present its 2023/2024 annual report to Parliament within the statutory timeframe. Eskom told the Committee it is targeting to issue its financial results by 20 December 2024. The Deputy Minister praised the progress achieved in the energy sector, particularly the significant period without load shedding. The Chairperson of Eskom outlined progress related to Eskom’s key priorities, including the ongoing process of unbundling Eskom into three entities—Generation, Transmission, and Distribution. The Group Chief Executive of Eskom provided details on improvements in financial and operational performance in the context of growing municipal debt. Eskom will maintain generation capacity while balancing the socioeconomic impacts of coal plant decommissioning. Financial recovery strategies, including revenue security, cost containment, debt reduction, and measures to combat corruption, were outlined, alongside the transition to clean energy sources. Committee members raised concerns about Eskom’s financial transparency, management of municipal debt, operational inefficiencies, and the persistence of load shedding. Questions focused on the energy availability factor, emissions control, delayed financial statements, and the progress of unbundling Eskom into separate entities. Members also sought clarity on strategies for holding municipalities accountable for debt repayment and measures to stabilise electricity supply and improve governance. There were concerns about the socioeconomic impact of coal plant closures, the fairness of tariff increases, and the importance of community engagement to protect infrastructure. The National Transmission Company of South Africa outlined its new role in transmission infrastructure and in supporting South Africa’s energy transition. Significant upgrades are needed to accommodate the integration of renewable energy sources into the grid. The plan detailed new transmission corridors, investment requirements, and strategies for overcoming challenges like land acquisition and supply chain constraints. Private sector participation and financing mechanisms were highlighted as essential for achieving these infrastructure goals. The presentation also addressed the importance of grid stability and demand-side management in mitigating the need for extensive new infrastructure. Committee Members questioned the financial viability of the new company, the allocation of assets and debt following separation from Eskom, and plans for involving local suppliers in infrastructure projects. Concerns were raised about the protection of transmission assets, the implementation timeline for new projects, and the role of the system operator under the new structure. Clarification was sought on the overall costs associated with infrastructure development and how these would impact consumers. The discussions concluded with acknowledgements of the progress made and recognition of the challenges ahead. Both Eskom and NTCSA officials expressed a commitment to improving operational efficiency, addressing financial concerns, and achieving a sustainable and inclusive energy future for South Africa.