ATC140313: Report of the Portfolio Committee on Energy on its oversight visit to KwaZulu-Natal, Free State and Gauteng on 27 – 31 January 2014, dated 12 March 2014
Report of the Portfolio Committee on Energy on its oversight visit to
KwaZulu-Natal, Free State and Gauteng on 27 31 January 2014, dated 12 March
Purpose of the report
purpose of this report is to report back to the National Assembly on the
findings of the Portfolio Committee on Energys
visit to KwaZulu-Natal, Free State and Gauteng.
households have least access to electricity and provisioning it to them is a
great challenge. Extending the grid to every household in the country is not
feasible now for technical and financial reasons. The solar home system (SHS)
programme was designed to give more rural people access to limited electricity
until such a time that they get grid connections.
water heater programme is one of the benchmark renewable energy projects that
are managed by the Department of Energy in its pursuit to ensure SA has an
energy mix that includes clean energy. In 2009 the Minister of Energy stated
that The Department will ensure that one million solar water heaters are
installed in households and commercial buildings over a period of five years.
In the 2012/13 Annual report of the DoE, it was reported that to date
350 000 solar water geysers have been installed to date. In terms of the
Integrated National Electrification Programme, it was reported that close to a
million new connections were achieved over the past four years increasing
access to electricity to over 84%. Various challenges and successes were noted
here and the PCE planned to engage with both the beneficiary communities and
concessionaires/service providers to gain an overview of both successes and
of our renewable energy programme, Amongst the G20 countries, South Africa is
now recognised as the 9
most attractive investment destination for
the green economy and our programme was voted by the Global Leadership
Infrastructure Programme in New York as the best green energy infrastructure
programme in the world in 2012. In this regard out of the 93 bids received, 17
renewable energy programmes were granted preferred bidder status in round three
of the REIPPP. This follows up on the successful financial closure of round
one, where 1 416MW of projects from 28 bidders are currently under
construction and round two where a total of just over 1000 MW was approved. In
terms of cogeneration, the Minister has made a determination in December 2012
that 800 MW of cogeneration power will be implemented in South Africa and the
DoE has as its target in this area, to develop a strategy and plan for the
introduction of economic infrastructure as per the IEP/IRP.
of the oversight visit
Portfolio Committee on Energy will conduct oversight on various energy related
projects in a number of provinces. The Committee plans to firstly visit solar
home systems that have been implemented in KZN. Further, the committee will
visit an area in the Free State where the Renewable Energy
Independent Power Producer Procurement
) is being implemented,
In Gauteng; the PCE will be holding public hearings on Transforming the gas
industry through partnerships and will further have a roundtable discussion
focusing on Cogeneration and tri-generation power initiatives and
partnerships. The week will end with a visit to Integrated National
Electrification Programmes (INEP) (and solar water heater programmes) in
Njikelana - Chairperson and Leader of the delegation
Hon GS Radebe
Hon N Mathibela
Tinto (joined delegation on 30 January 2014)
Ferguson (joined delegation on 30 January 2014)
Greyling (joined delegation on 30 January 2014)
Mr A Kotze
Rampersadh (Content Advisor)
Mr L Dodo
Mr T Gubula (Media - Parliament)
Ms K Barlow (Media - Parliament)
and the 28
January 2014 - KwaZulu-Natal visits
On the 27
and the 28
of January 2014, the
Committee visited non-grid electrification projects in Ndwedwe Municipality and
Msinga Local Municipality. The aim was to visit four Municipalities including
Nquthu and Maphumulo; however, this became impossible due to time constraints.
A summary of the visits is provided below.
It should be noted that Mr. Diana an engineer from UKZN was part of
the delegation at the invitation of the Chairperson.
Msinga Local Municipality meeting with stakeholders and
of Msinga was present and was requested by the Chairperson to welcome all
present. After the welcoming, the Department of Energy and Ukukhanya Energy
Services (KES) briefed the Committee as well as the various stakeholders
present on the non-grid electrification programme prior to the oversight
2.1.1 Briefing by the Department of Energy
Department of Energy (DoE) gave an overview of the Non-grid Electrification
Programme indicating that the project started in 2001 and the DoE is
responsible for the project.
Department highlighted the following regarding the project:
DoE appointed KES to install solar home systems. There are more service
providers, other than KES, in various other regions within KZN. However, KES
has been appointed to provide solar home systems (SHS) specifically to the
installed in areas where there
are challenges with grid electrification in the medium to long term.
providing SHSs, the DoE looks at the plans of Eskom and the Municipality. If a
municipality is at the far end of the grid electrification plans of the Eskom
and Municipality such a municipality qualifies for nongrid electrification
(in this case, a SHS).
Department emphasised that a SHS is a temporary measure while waiting for
has a 20 year contract with KES. The reason for the 20 year period is to ensure
the sustainability of the project. Another reason for the 20 year period is
that the installation fee that is given to KES by the DoE is 80 percent of the
total budget. The remaining 20 percent is from KES investments. The Department
also confirmed that they work very closely with Msinga Local Municipality.
further explained that when the project started in 2001 the system had the
capacity to provide for four lights, charging of cells phones as well as the
use of a black and white television and this is the system used at
However, the DoE has since
increased the capacity of the system the only change is that one can plug in
a colour television and can connect 8 lights instead of 4.
regards to the financing of the project one has to apply for the solar home
system and pay an application fee of R110.00. On a monthly basis one pays a
service fee of R89.00. The reason for paying the R89.00 service fee is for KES
to do maintenance if there are faults on the battery or any part of the
systems. KES also utilizes part of the service fee to pay their running
expenses. As a way of subsidising the indigent communities, municipalities contribute
a portion of the R89.00 service fee, from the Free Basic Electricity (FBE) fund.
Once a municipality has contributed its portion from FBE, the beneficiary pays
the difference. In the case of Msinga beneficiaries were paying R55 instead of
R89.00. However, the FBE allocation differs, across the differing municipalities
i.e. the difference paid by the beneficiaries in Msinga Local Municipality
will not be the same in another municipality.
Briefing by Ukukhanya
Energy Services (KES)
indicated that DoE has already covered most of what the project is about.
However, the presenter, Mr Ngcobo, added that the installation in Msinga
started in 2002. Currently, Msinga is the biggest Municipality in terms of
people who have SHSs. More than 7 000 people in Msinga received SHSs, about 70
percent are still paying for the system, while others have stopped paying
therefore their systems have been disconnected.
two offices in Msinga. In the two offices, KES has employed about 40 people on
a permanent basis mostly to do maintenance. People employed are from Msinga,
including 8 women, who were identified by the municipality.
explained that, the system is designed in such a way that if one is not paying
it switches off automatically. KES confirmed that Msinga Municipality
contributes (from the FBE) R34 and the beneficiaries pay the difference. KES
noted that they are also exploring other alternative energy sources that can be
rolled out in the future not just SHSs.
Input by Mayor
Sikakhane of Msinga Local Municipality
KESs presentation, the Mayor of Msinga added that Msinga Municipality has a
huge backlog in terms of service delivery, generally. The Mayor welcomed the
SHS programme indicating that
better to get half a loaf of bread than nothing
. However, the Mayor
pleaded that the grid electrification programme be accelerated.
acknowledged that there are areas that are pipelines for grid electricity
emphasising that he did not mean that the department is not doing anything. The
Mayor also highlighted that water is the main challenge and the main need in
the Municipality much more important than electricity.
presentations, members of the community as well as Members of Parliament were
invited to contribute or respond to presentations. The following key issues
were raised, particularly by the Community Members:
A concern regarding payment of grid electricity in Emahlabathini
area was raised. A community member indicated that when he bought electricity
for R100 it was utilized quickly. The resident contacted Eskom and was
given a number to key into the system, resulting in the resident
recovering half the amount of electricity he has purchased. This was a
general problem in Emahlabathini. The Emahlabathini community was then
advised by Eskom to report the matter to the Councillor, who would take up
the matter with the Municipality. The feedback was never received from the
Councillor the current situation is that grid electricity is available
but not working.
Adding to what Mayor Sikakhane said: As much as the community
appreciates the SHSs, they would like to get grid electricity from Eskom.
There were complaints that the payment method used by KES is
problematic. The beneficiaries of the solar home system are required to
pay the monthly fee at the Post Office. The issue highlighted is that
old people spend more than an hour in
the queue in the post office when wanting to pay for the KES solar. There
is one queue for everything
. A dedicated line for those paying for
KES services was recommended.
An issue was raised about a community/village member that resides near
an existing grid connection but was told supply to his village will come
from the side that has non-grid electrification. Residents were concerned
about this process.
A concern was also raised about the fact that the KES systems are
designed in such a way that supply gets disconnected when one has not paid
for the KES services. The main issue though, was that even though one is
disconnected, the monthly service fee still has to be paid. The community
needed clarity on how one pays for a service that is not being used.
The limited capacity of the solar home systems was highlighted as a
concern. The fact that one cannot cook or connect a fridge was regarding
as very limiting in light of the fact that residents are far from the
towns preferable they would like to buy bulk food and store it in the
Clarity was sought as to what happens if the solar panel was
stolen, would KES replace the system?
the feedback regarding queues at the post office and indicated that they would
try to work with the Post Office in ensuring a dedicated line for KES
Customers. The method of paying at the Post Office was done because of robbery
at KES offices. KES customers were requested to pay at the Post Office and
bring slips to KES. KES pleaded with the communities to report to KES on issues
relating to payments problems at the Post Office. Old people can still be assisted
at KES offices; however, younger people are encouraged to pay at the Post
On the point of paying
for the service while disconnected KES indicated that when the SHS was
installed it was installed in a manner that one rents the system hence
paying for it even though it is disconnected (in other words one pays for
having the system).
When a system is
stolen, the owner has to report the stolen system to the police. With such
evidence KES would be able to replace the system; however, there will be a fee
delegation visited a household in a deep rural village and was able to
appreciate the significance of the SHS in a poor rural environment.
January 2014 -
Ndwedwe Local Municipality
Briefing at the
Ndwedwe Council Chamber
The first part of the meeting was
held in Ndwedwe Local Municipal offices in the morning, on the 28
of February 2014.
The meeting in
Ndwedwe was attended by the Members of the KwaZulu-Natal Provincial Legislature
(members of the Provincial Committee on Social Development, including the
Deputy Chair of Chairs), PCE Members,
the Acting Municipal Manager, the Mayor of Ndwedwe and the officials of Ndwedwe
Local Municipality. The second part of the meeting, the same day, was with the
Ndwedwe community in Hosiyana village.
In the first meeting the acting
Municipal Manager chaired the meeting as requested by the Mayor (Mr Hadebe).
The Mayor welcomed all present and thereafter, a round of introductions was
The Chairperson of the PCE, Hon
Sisa Njikelana, outlined the purpose of the visit indicating that one of the
roles of Parliament is to conduct oversight over any department. He explained
that the PCE was aware that the DoE was rolling out SHSs. So, as part of the PCE
oversight work, the Committee requested DoE to identify areas that the
Committee could visit, and KZN was identified as the main province where there
was substantial rollout. Furthermore, it was explained that the KZN
municipalities were selected as a sample as it was impossible to visit all
areas that are rolling out SHSs. The Chairperson thanked the Members of the KZN
Provincial Legislator for attending indicating that energy issues are cross
Briefing by the Department of Energy
Presentations were similar to those
done at Msinga Local Municipality details of which are summarised below.
gave an overview of
the Non-grid Electrification Programme indicating that the project started in
2001 and the DoE is responsible for the project.
The Department highlighted the following
regarding the project in Ndwedwe:
electrification programme started in 2001. The intention was to provide some
form of electricity to the areas which could not be electrified through grid
electricity. Areas identified were those that were not earmarked for
electrification in the medium and long term.
The system has
the capacity to connect 2 6 lights, black and white television as well as the
charging of cells phones. The system does not provide for heating and cooking.
DoE appointed a service provider (KES) on a 20 year maintenance contract.
Reason for the 20 year contract was to ensure sustainability of the project
until grid installation.
The Ndwedwe Local Municipality
works hand in hand with KES. The Municipality is responsible, amongst
other things, for identifying the indigents and introducing KES to the Councillors
and the community.
Municipality is not involved, implementation becomes a challenge. With
regards to the financing of the project one has to apply for the SHS and
pay an application fee of R110.00. On a monthly basis, one pays a service
fee of R89.00 and as explained above, part is subsidised by the
Municipality from the FBE funds.
The cost of the solar
home system opted for (by the DoE) is equivalent to the cost of grid
connection. Due to the drop in SHS prices, the specifications of the systems
have since been revised to provide for more, like a colour TV. At the moment,
this is work in progress.
Briefing by the Ukukhanya
Energy Services (KES)
delivered a presentation adding to the points raised by the DoE. The following
project in Ndwedwe started in 2005, however installations started in 2006.
However the project stopped after 300 installations as there was a conflict on
the appointment of KES as the service provider. Lack of cooperation from the
community led to a low number of installations.
DoE, in 2009, gave KES another budget, where KES came back to Ndwedwe for
project implementation. This also did not solve the problems as the office in
Ndwedwe had to be closed because only about 40 to 50 customers were paying for
the system and this was not sustainable for the KES offices. It was possible
that certain households were illegally using the system.
is only one person at KES offices in Ndwedwe responsible for complaints.
Others have lost their jobs.
appreciated the invitation by the PCE and also noted the educative nature of
A concern was
raised that, the power supplied by the system is limited it was argued that,
the system should also support a refrigerator.
The system does
not address energy poverty as women still have to continue collecting wood for
heating and cooking. Therefore, it was urged that the DoE upgrade the system.
issue of conflict on the appointment of KES and the closure of the project: It
was indicated that the community was not happy with the system, they preferred
grid electricity. It was suggested that the budget must be increased from DoE
to accelerate electrification.
With regards to
the issues on payment of the system, it was indicated that poor people cannot
afford to pay for the system it should be free. The provincial legislators undertook
to discuss this issue independent of the PCE.
The main issue in
Ndwedwe seemed to be around the acceptance of the non-grid technology perhaps
education and awareness
on alternative energy
sources needs to be intensified.
The Mayors contention was that Ndwedwe Municipality is 80 percent
The Department of
Energy has to review the policy on non-grid electricity system including budget
allocation as well as the technology to accommodate increase of power.
Syndrome was raised quite sharply i.e. the SHS was not installed in certain
households within area where installations were made.
A site visit to a household
where a SHS had been installed was made. However, this did not happen as the
system had been stolen in the said house.
Public meeting at
Hosiyana Village in Ndwedwe
A second meeting was held with the community at Hosiyana village in
Ndwedwe... The meeting was facilitated by the Mayor of Ndwedwe.
Hon Njikelana explained the purpose of the meeting and requested that
community members share experiences, challenges and opportunities regarding the
non-grid electrification programme. The Community raised the following issues:
The community experienced challenges with
crime. SHSs are problematic because they are easily stolen.
Members of the
community would prefer grid electricity, as the SHS does not fulfil all their
requirements. Heating and cooking also needs to be considered when installing
The area is in
the process of being electrified some members of the community emphasized
that they would rather wait for grid electricity.
appreciated the fact that could at least light their houses with solar.
However, a concern was raised that solar is not reliable when it is raining
the system does not work.
There was a concern raised that if homes have a
SHS, this would prevent households from being grid-electrified
A whole host of other service delivery issues
were raised viz.:
Lack of potable
water Note: This was strongly emphasised!
Lack of roads
Need for houses
In terms of the
capacity of the system, KES clarified that the system is determined by the DoE
not KES. KES is the implementing agent. Issues relating to the limited capacity
of the system should be directed to the DoE.
In response to
this, the DoE indicated that the system is currently being upgraded (work in
progress) the new system could be installed in two houses instead of one.
However, the new system still does not address the issue of energy poverty as
it does not provide for cooking and heating.
capacity of the solar home system is essential as a way to address poverty
issues, particularly to provide for cooking and heating as well.
The absence of
electricity and the impact thereof on schools was noted by the PCE.
The absence of
water, although not a mandate of the Energy Department was noted but was
indicated that it would be referred to the relevant Department (Water and
relationship that KES had with the Doe together with the Msinga Municipality
and the Post Office was commended and it was emphasised that such relations
It was indicated
that the whole drive for the SHS was to eventually upgrade to grid electricity.
It is an interim measure. Education and awareness raising on alternative energy
sources is essential.
municipalities appear to have differing policies on the deployment of the FBE
policy and hence recipients of non-grid electrification are receiving differing
amounts (to pay the service fee) depending on where they live.
impact study of the programme needs to be conducted
The DoE and
Eskom, to in future, come to the municipality and/or communities to explain the
Letsatsi Power (Free State) - 29
of January 2014
On the 29
of January 2014, the Committee visited a Solar Photovoltaic Park (SPV) a
project that is part of the Renewable Energy Independent Power Producers
Procurement Programme (REIPPPP). The Committee has been getting updates and reports
from DoE on how the REIPPP is doing. The Committee thought it would be useful
to get a sense of what is happening on the ground in terms of implementation.
The description of the project is provided below.
Solar Reserve SA,
Intikon Energy (Pty) Ltd, Kensani Capital Investments (Pty) Ltd, Old Mutual
Insurance Company of South Africa and GCL-Poly Energy Holdings Limited, jointly
developed and submitted the SPV project, which was awarded to the preferred
bidder on 07 December 2011.
entails the development, design, construction, financing and operations of
Solar Photovoltaic Park 50km North-West of Bloemfontein in the Free State, with
an installed name plate capacity of 75 MWDC and which will deliver circa 64
MWAC into a 132 kV distribution line. The project is being designed,
constructed, operated and maintained by the consortium comprising of ACS Cobra,
GranSolar and Kensani EPC.
project cost is estimated at circa R2.4 billion. The Project is financed on a
non-recourse project finance basis, with approximately 75 percent of the
project funded through senior and junior debt arranged and underwritten by Rand
Merchant Bank. The shareholders are funding all the equity in the Project by
ordinary shares and shareholder loans. Intikon Energy, SolarReserve and Kensani
(the developers), have been developing the Project since the fourth quarter of
Prior to the
Committee visiting the site, a presentation providing an overview of the
project (including the background above) was delivered by the project partners.
Key issues emanating from presentations are as follows:
The project is
ranked amongst the top 10 ten in the world in terms of its scale.
Letsasi Power started
construction work on the 6/7
of January 2013. Project covers about
150 hectares and 227 000 PV modules have been installed.
1200 km of cables have also been installed.
Construction is now
completed and Letsasi Power officially notified DoE on 28 January 2014 for
the completion. They officially requested from NERSA permission for early
power generation. Letsatsi Power planned to connect to the grid on 9
of February officially, instead of the contract date
in May 2014.
About 400 locally
people have been employed
on the project
In terms of
economic develop (which is a high priority), targets have been exceeded. For
example, in terms of job creation, women participation, enterprise development
adopted a high school at Tokologo Municipality and created a vegetable garden.
The garden is feeding about 20 to 30 families per week. The aim is to expand
the garden. The next phase is to train the community on how to harvest and sell
the vegetables for profit.
The company employed
local people who had no skills
people were trained
Letsatsi also appointed
a Transformation Manager, ensuring compliance with the DoE requirements. For
example compliance with the local content of the materials, use of SA
companies, employing black people within the 50km radius, and helping to
understand what has to do with compliance requirements.
worked with the Municipality in terms of identifying workers in the area.
was not found in the area, but they trained the local workers.
needs analysis study of employees was done. Workers were trained in the
following areas: safety and 1
aid, construction and water,
electrical. Realised that local people were willing to do the training. Money
was sourced and training was conducted for 60 to 70 people. They were issued
with SETA accredited certificates. Of the 250 assessed, 50 fell off as they
were not interested, but 190 were interested. Letsatsi looked at their current
level of education and identified 4 types of programmes; Healthy and Safety,
Electrical Works Installation, First Aid and Construction.
programme started in October 2013 with about 67 people and they fully completed
and at the time of the site were due for the exams. 80 start next week. Letsatsi
now has 120/130 SETA accredited workers. This was not part of the contract and
can be look at as pro-activeness from the developers.
University of Technology was also adopted by Letsatsi Power. It was difficult
for the University to identify project for the students in-service training
project as there are few opportunities in the solar industry. There are 70
students in total and the ultimate goal to run a solar manufacturing plant in
Somerset West. Letsatsi wanted them to learn what it means on the practical
point of view.
It was also
noted that women owned companies were difficult to find e.g. doing electrical
This was a huge
problem across the project.
expressed its utmost appreciation of the achievements and commended Letsatsi
Power for going beyond the contract obligations
cooperation between the company and Dealesvile Local Municipality was also
appreciated specific reference was also on the utilisation of the personnel that
was trained by Letsatsi Power and was to be transferred the municipality on a
coordination which included the provincial offices of DoE, local Energy
Information Centre and local FET College and some universities was noted
from the University of Free State who was invited as an expert was
encouraged to explore and set a joint initiative with Letsatsi Power for
students in future
Dr. Ntwaoabarwa an
academic from University of Free State was part of the delegation at the
invitation of the Chairperson.
Oversight visit to Ivory Park, Johannesburg
January 2014 -
The PCE visited Ivory Park
SWH project on the 31
January 2014. Due to heavy rains no site
visit was conducted. However a briefing meeting, at the local community hall,
was held with the local Councillors, members of Ward Committees, academics from
UJ (at the invitation of the Chairperson), Eskom and DoE to discuss the
successes and challenges identified.
The Chairperson welcomed
everyone and thanked them for their attendance.
Clr. JP (Big Joe) Mhlanga
(Ward 78) welcomed everyone on behalf of the City of Johannesburg and thanked
the PCE for taking the time to visit the area. With him were Clr. Petros Zitha
(Ward 79) and Clr T.M. Mabotja (Ward 77). The three wards make up part of Ivory
Park in the City of Johannesburg.
Briefing by ESKOM
Mr. M. Dlamini
presented the project where it was explained that
the scope of work was the supply, delivery, installation and maintenance of
16000 solar water heaters to the Ivory Park area. It started on the 11
October 2010 and was completed in 30 April 2012. A total budget of R101.76
million was allocated to the project. Three main contractors were used for the
installation Genergy, Thunzi Consulting (Pty) Ltd and Machite Engineering cc.
In terms of employment 292 local people were employed on the project as Data
Capturers, Community Liaison Officers, Installers and Installer assistants.
Roshcon was employed to conduct random audits to selected areas and the SANAS
10106 specification was used to develop a checklist for technical audits. Eskom
indicated that there was a 5 year after sales service and maintenance programme
and all SWHs have a 5 year guarantee and within this period all the installed
geysers will be replaced and/or maintained depending on the defects.
Eskom listed the following
issues/challenges identified from their side;
The community was not properly
informed on the employment processes followed resulting in work stoppages
Some of the SWH developed leaks as
the unit are designed for a maximum of six bar pressure and the water pressure
in the area fluctuated above and below this.
A lack of capacity from suppliers
resulted in stoppages
Eskom needs to ensure that proper
planning is done and that the municipality and Councillors are involved.
There were some technical problems
The high content of calcium
carbide in the water also resulted in damage to units
There needs to be feasibility
studies done to assess the challenges that lay ahead
There also needs to be an
assessment of the roof structures as some cannot hold the weight of the units
Eskom needs to re-engage with the
DoE for cost of maintenance of geysers
Finally Eskom noted that
these projects must involve the communities and communication is critical
Comments from the Department of
Mr X. Mabusela
presented a more overhead view of
the project and indicated that of the planned target of one million SWH
installed, Eskom and Municipalities have installed
390 000 so far. The implementation of
the projects should be under the management of the Municipalities.
Further, in terms of the
actual units, currently there is a 70% local content threshold but originally
most of the units were imported. Currently some tubes are imported and the
units should have a 5 year warranty.
Comments from the City Councillors
on behalf of the Councillors and
indicated that the community was well informed, there was clear communication
and public meetings. There were also clear employment arrangements made with
meetings held every Monday and Thursday.
In terms challenges
Some units were delivered but not
installed hence it cannot be claimed that the project was completed
The quality of the geysers was low
The community were to be trained for
maintenance but so far this is not happening
There was a lot of poor
workmanship and this has resulted in a lot of leaks
Eskom is not responding
to the concern of the Councillors
further indicated that the project employed a lot of people and they were
happy. The project was transparent and there was regular communication. There
are benefits as people have hot water and save on paraffin used to heat water.
In his Ward there is only
one trained person to maintain the geysers and the work load is too high for
him as they break regularly. Further he has a problem obtaining parts for
indicated that some people have removed their geysers to other provinces
indicated that there was never a handover from the
Contractors to the Councillors. Further he indicated that there needs to be a
roll out of geysers in those areas without it. Clr Mhlanga ascribed the work
stoppages to problems between the contractors and sub-contractors. He also
indicated there were problems with installations in his area.
The Members requested that the DoE
follow-up with these issues and check why there was no sign over to the
The five year maintenance must be
looked at and honoured.
The DoE was requested to look at
the quality of work and of the products as well. There should be a happy
letter signed by the residents when a unit is installed.
There must be further
investigation into installing SWH in houses where the roof structures are not
secure as people could get injured with the help of UJ.
The removal of SWH must be
investigated and managed as this could be a criminal issue.
It was further recommended that the
parties involved in this issue work together to solve the problems with the DoE
coordinating such efforts
The Members acknowledged that
there is positive in everything e.g. the community is saving on paraffin costs.
In conclusion The Chairperson
strongly suggested that a Project Steering Committee be established to deal
with the outstanding issues. The Chairperson further indicated that standards for
quality should not be compromised as the SABS is there to assist in inspecting
Finally, ESKOM, City of
Johannesburg and the DoE were requested to meet and address all concerns and
challenges raised in the meeting and report to the Chairperson within two
weeks, indicating what action steps have been taken to deal with the issues.
on non-grid electricity system including budget allocation
as well as the technology to accommodate increase of power
initiated as matter of urgency.
The Department of Energy
to upgrade non/off-grid systems and also
make them scalable to accommodate those who may express additional need
and appropriately address
The Department of Energy
to explore permanency or long term
approach on the non/off-grid electricity system in the rural areas
Strong coordination between various
stakeholders especially Department of Energy, ESKOM, and the
municipalities be addressed as a matter of urgency
Intensive public education
and mass communication with the help of
SABC, GCIS, local community media especially community radio stations and
municipal communications units on non/off-grid electricity system
including Solar Home Systems
Grid electrification programme be accelerated in both
Msinga and Ndwedwe Municipalities
Address the huge backlog in terms of general service
delivery in Msinga Municipality
care especially for the sickly and elderly particularly at pay points
micro-insurance arrangements for damaged or stolen equipment
Department of Energy to explore jointly
with the Department of Basic Education introduction of appropriate
electrification of schools
Integration of FBE and municipalities to be
consistent in their allocation of subsidy such be done through the
support of SALGA
A socio-economic impact study of the programme to be conducted
Issues below be referred to
relevant departments and/or spheres of government for their consideration:
of potable water
Water is the main challenge and need in Msinga
Lack of roads
Need for houses
The Department of Energy, ESKOM, the
municipalities visited together with their district municipalities to
arrange follow-up meetings to address issues raised with the aim of
Such follow-up meetings include
municipalities of Nquthu and Maphumulo as a compensation for not visiting
The involvement of experts during oversight
visits be promoted even in future as it had proven to of benefit to
ESKOM, City of Johannesburg and the DoE were requested to meet and
address all concerns and challenges raised in the meeting and report to
the Chairperson within two weeks, indicating what action steps have been
taken to deal with the issues.
The Minister of Energy
requested to investigate the allegation of the Island Syndrome in the
Ndwedwe area and take the appropriate action where necessary.
Report to be considered.
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