Question NW2150 to the Minister of Energy

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02 July 2018 - NW2150

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Energy

What are the (a) Government and (b) relevant entities projected to spend both directly and indirectly on the Renewable Energy Independent Power Producer Programmes; (2) has he found that the Government and the entities can afford the cost; if so, what are the details of how this was determined?

Reply:

There is no direct or indirect spend by Government or relevant entities exclusively attributable to the Electricity Regulation Act, 2006, Section 34 sanctioned Renewable Energy Independent Power Producer Programme (REIPPPP). Regulation 10 of the New Generation Regulations enable Eskom, as the single buyer, to recover all costs in respect of the Section 34 Ministerial Determinations and includes payments for the purchase of electricity from Independent Power Producers (IPP) in terms of a power purchase agreement. Eskom only pays for actual electricity evacuated into the grid at a predetermined fixed price that can only escalate by CPI annually.

Approved / Not Approved

Mr J T Radebe, MP

Minister of Energy

Date:

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