No threat of City Power debt cutoffs by Eskom

JOHANNESBURG - City Power has moved to remove confusion about the threat of cut-offs by Eskom over the municipal entity's more than R4-billion debt to the national supplier.
Some reports had suggested this may be the route Eskom will take as the government entities dispute the amounts owed to each other.
But the Johannesburg metro's electricity provider says mediation by the Electricity Minister is helping resolve the impasse.
"There is no issue between City Power and Eskom, we are working together," said City Power spokesperson Isaac Mangena.

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IOL News

an hour ago

• IOL News

Will SA bear the cost of Eskom's R257bn air quality compliance?

Cooling towers at an Eskom coal-based power station in Duhva. Image: Mike Hutchings/Reuters SOUTH Africa's electricity crisis is about to get worse, not just because of load shedding, but because of the staggering cost of cleaning up Eskom's toxic air pollution. In a tense engagement with the National Council of Provinces (NCOP) Select Committee on Agriculture, Land Reform and Mineral Resources, Eskom executives dropped a bombshell: full compliance with stricter air quality laws would cost R257 billion in capital expenditure and R6.3bn per year in operational costs — potentially hiking electricity tariffs by 10%. Even more alarming? Without compliance, 22 gigawatts of Eskom's coal fleet — nearly half its capacity — could be forcibly shut down after 2030 due to sulphur dioxide violations. The revelations came as Eskom's chief executive, Dan Marokane, and Deputy Minister of Electricity and Energy, Samantha Graham-Mare, faced tough questions from MPs over the utility's financial constraints, its slow transition to cleaner energy, and the devastating health impacts of coal pollution on communities. Eskom has already spent R3bn on emission reduction projects, with another R15.6bn allocated over the next five years. But this is a drop in the ocean compared to what is needed. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Marokane admitted that while Eskom currently met SO² and nitrogen oxide limits, post-2030 regulations present an existential threat. The utility's proposed 'compromise' solution — focusing on SO² reductions at Kusile and Medupi, along with particulate matter upgrades at six other stations — would still require R77bn in capital and R2.1bn per year in operational costs. But even this plan is in jeopardy. Only R15.6bn has been budgeted for emissions projects over the next five years — far short of what's needed. Perhaps the most damning admission came from Deidre Herbst, Eskom's Senior Manager for Environment, who revealed that retrofitting the aging coal fleet for full compliance could take up to 14 years and more than R257bn — only for many of these plants to be decommissioned shortly afterward. 'Given the time frames, refitting most plants would be imprudent, constituting fruitless and wasteful expenditure,' Herbst said. Several power stations — Matla, Duvha, and Kriel — will shut down before flue-gas desulfurisation (FGD) plants can even be installed. Others, such as Lethabo, Tutuka, Matimba, and Kendal, will close shortly after FGD completion. 'Majuba and Matimba are in sparsely populated areas, limiting the health impact and cost benefit,' Herbst said — an utterance that drew sharp criticism from MPs who accused Eskom of downplaying the health risks to rural communities. MPs did not hold back in their criticism. DA MP Nico Pienaar demanded answers on why R40bn was being spent on diesel generation — money that could instead fund FGD plants. 'What happens if the new FGD plant isn't built and diesel turbines aren't closed, as per the World Bank agreement?' he asked. The DA's Sune Boshoff was even more scathing: 'Gauteng looks terrible when the wind blows. Is Eskom not wasting money on upgrading structures that won't exist much longer?' She slammed the projected 10% tariff hike to fund compliance, asking why alternative technologies and international funding were not being aggressively pursued. The EFF's Moses Kennedy pressed Eskom on whether independent health impact assessments had been conducted near Kendal, Matla, and Duvha stations, where residents suffer from chronic respiratory illnesses. Herbst admitted that while health benefits from cleaner stoves had been studied, power station health assessments were still lacking. Eskom's much-touted Just Energy Transition (JET) also came under fire. The state-owned utility's air quality offset programme — meant to provide cleaner energy alternatives to 96 000 households in Mpumalanga — has reached only 5 500 homes so far. Herbst claimed the rollout would accelerate, but MPs remained sceptical. Meanwhile, Northern Cape representatives Henri van den Berg (FF+) and Patricia Mabilo (ANC) pushed for green hydrogen and ammonia projects, arguing that they could create jobs. Deputy Minister Graham-Mare revealed that the EU had pledged €7bn for energy transition projects, including aviation sector decarbonisation. But with coal-dependent regions such as Mpumalanga facing massive job losses, MPs questioned whether the transition was truly 'just'. Marokane hinted at a controversial solution: nuclear energy. 'Most countries are building nuclear,' he said, suggesting that South Africa's Integrated Resource Plan (IRP) should reconsider its stance. 'Nuclear stimulates economies and industrialisation.' Yet, with Eskom's finances in shambles and R50bn earmarked for new technologies — including a Medupi FGD plant — the feasibility of nuclear expansion remained doubtful. Eskom's dilemma is clear: Spend R257 billion to comply with air quality laws, raising tariffs by 10%. Risk 22 GW of shutdowns if they don't comply, plunging SA into darkness. Face public outrage over health impacts and job losses in coal regions. As Deputy Minister Graham-Mare admitted, 'This is about balancing interests with limited resources.' But for millions of South Africans choking on coal pollution and struggling with soaring electricity costs, that balance feels dangerously skewed. The question remains: Will Eskom clean up its act—or will South Africans pay the price for its failure? Get the real story on the go: Follow the Sunday Independent on WhatsApp.

The Citizen

13 hours ago

• The Citizen

Multi-billion Limpopo mega-project has ground to a halt

Makhado Special Economic Zone, announced in 2018, was intended to attract investments of R40-billion. The mega industrial project in the Musina Makhado Special Economic Zone has ground to a halt. Photos: supplied by Living Limpopo The Musina Makhado Special Economic Zone in Limpopo, announced in 2018 by President Cyril Ramaphosa, was intended to attract investments of more than R40-billion. But seven years later, the project has all but ground to a halt. Only one company has made a firm commitment to invest. Though more than R100-million has been spent, there are no roads, electricity or water connections; and the company contracted to build roads has terminated the contract. However, the chair of the board says a turnaround plan is in place and construction on the first infrastructure projects will start in September. Seven years after its launch by President Cyril Ramaphosa, the multi-billion Musina Makhado Special Economic Zone (MMSEZ) in Limpopo is at a standstill. R67.5-million has been spent on consultants and R50-million on roads and infrastructure. But there is no infrastructure, no electricity connection, no roads and no water. Described on its website as 'a flagship of the Limpopo Provincial Government' the MMSEZ is 'a green field investment platform consisting of two sites' – Artonvilla, near Musina, intended for light manufacturing, and Mopani, near Makhado, intended for heavy industry. The zone claims to offer 'state of the art logistics facilities promoting operational excellence' But though the MMSEZ was touted to bring in R40-billion in investments, so far only one company has made a firm commitment to invest. ALSO READ: Revival of job-creating initiative in Limpopo A report by the chair of the MMSEZ board, Nndweleni Mphephu, to the Limpopo Economic Development, Environment and Tourism department, shows how little has happened in what was to be a mega industrial park in the heart of the Limpopo Valley. The report, dated 28 May, follows questions in Parliament and an oversight visit to the area by members of the Limpopo Economic Development, Environment and Tourism portfolio committee. According to the Minister of Trade Industry and Competition Parks Tau, R2.27-billion would be needed for bulk infrastructure on the site, and R1.07-billion had been set aside between 2020/1 and 2026/7 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that the DTIC's Industrial Zones Programme was helping the MMSEZ with advisory support. Some of the money has already been spent, much of it on consultants. In his report, Mphephu gives a list of consultants, service providers and contractors who have benefited to date. Spending of just over R85.2-million was approved for consultants, of which just over R67.5-million has already been paid to 17 consultants, including engineers, planners, quantity surveyors, project managers and horticulturists. Just under R40-million has been paid to service providers, including Eskom. ALSO READ: Limpopo's special economic zones expected to create 21,000 jobs According to the report, three contractors have so far benefited, including Tshiamiso Trading 1 and Tshiamiso Trading 2, which received a R200-million contract for roads and stormwater infrastructure and a R99.3-million contract for bulk sewer and wastewater treatment works. A contract for R134-million was awarded to Rembu Construction, also for the construction of bulk sewer and wastewater treatment works. But though some earthworks have been done by Tshiamiso on the northern site, there are no finished roads, electricity or water on either site. After being paid just over R50.4-million, Tshiamiso had to stop work on the northern site, after beginning bush-clearing, because the land belonged to a different organ of state and transfer had to take place first, the report says. Tshiamiso has now terminated the contract and is claiming more money from the MMSEZ, citing non-payment for standing time. This dispute is currently in litigation. Tshiamiso Trading is also accused of unlawfully removing white rock materials from another site to the MMSEZ site without the owner's consent or any formal agreement or compensation. ALSO READ: Limpopo unveils R1.8 billion budget boost for economic development The MMSEZ southern site was gazetted as a Special Economic Zone in 2017, but it turns out that the northern site at Artonvilla has yet to be gazetted, according to a response by Tau to a question in Parliament. Tau said the Limpopo government had indicated it would submit a request before the end of June 2025 to gazette the northern site. In his report, Mphephu noted fierce 'oppositions, dissenting views and pushbacks' mostly from environmental groups, over the southern site. Some of these were challenging the Environmental Impact Assessment in the Polokwane High Court. But in the absence of an interdict, the report says, 'all activities leading to the development, including township establishment processes are expected to proceed.' Tshiamiso Trading is one of the contractors which has been paid. When President Cyril Ramaphosa publicly announced the MMSEZ in September 2018 following his return from the Forum for Africa and China Cooperation, it came with the promise of an initial investment value of more than R40-billion. To date, little of that money appears to have materialised. ALSO READ: It's war on power, water theft to save Limpopo economic zones Responding to questions in Parliament in May, Tau gave a list of investment pledges amounting to more than R8.64-billion, of which R2.1-billion has been verified and validated from eight prospective investors. But according to the report, only the China-based Kinetic Development Group has come to the party, with a R16-billion promise of a ferrochrome smelter on the southern site, once township development on the site is approved, and subject to EIA approvals. If investors do come, one of the biggest questions will be: where is the water going to come from in this semi-arid area? The MMSEZ has approached the Water Services Authority (Vhembe) and the catchment management agency (the Department of Water and Sanitation, DWS) in the region to determine whether they have capacity, either from treated or raw water, to supply the developments. According to the report, Vhembe agreed to provide the MMSEZ with some of its allocation for raw water to kickstart development on the northern site. The DWS said treated water could be brought from Zimbabwe by pipeline for the future development of the site. 'For the south, a few boreholes were drilled in order to start the development of the site. For further development, a pipeline needs to be built to connect to the bulk pipeline from Zimbabwe. Furthermore, two dams are earmarked to be constructed in future to specifically provide water to the site as it grows,' the report says. According to the report, the MMSEZ has now implemented a 'turnaround plan' including a review of the design of roads and stormwater. A division of the Industrial Development Corporation has been appointed as implementing agent, with four professional engineers assigned to the MMEZ full-time. Construction on the first projects will start in September, the report says. This article is published in association with the Limpopo Mirror/Zoutpansberger. Correction on 2025-06-19 09:53 This article has been amended to clarify that the visit to the site was by members of the Limpopo Economic Development, Environment and Tourism portfolio committee, not by MPs. This article was republished from GroundUp. Read the original here.

IOL News

21 hours ago

• IOL News

EEskom employees pocket R3bn in overtime during turbulent year

Electricity and Energy Minister Kgosientsho Ramokgopa has disclosed that R10 million was paid to Eskom board members and R3 billion in overtime to employees. Image: Henk Kruger / Independent Newspapers ESKOM employees pocketed R3 billion in overtime during the 2023/24 financial year. This was for work outside the normal working hours that was approved for an emergency during a standby period, breakdown of plant, pre-arranged plant maintenance, commissioning of plant, authorised construction work on site or critical personnel shortages only for short periods not exceeding one month, among other things. 'Approximately 92% of the workforce is eligible for overtime,' said Electricity and Energy Minister Kgosientsho Ramokgopa. He was responding to parliamentary questions from EFF MP Mandla Shikwambana, who enquired about the annual expenditure on overtime for Eskom employees and the circumstances under which overtime was paid. Shikwambana also wanted to know whether the 22 board meetings, averaging two meetings per month, as reported in the 2024 annual report, were pre-planned and the reasons for not planning them. He also asked the total remuneration of each board member and whether the board members were subject to individual performance reviews. The board of directors was paid more than R10 million in board fees. He said 22 board meetings were held, and at least 10 were pre-scheduled for the period between April 2023 and March 2024. He said non-executive directors had not been paid per meeting but had received a fixed annual fee based on their committee allocations. 'This fixed fee implicitly covered participation in up to eight scheduled board meetings. The remaining 14 meetings that exceeded the planned schedule did not attract any additional fees.' Board chairperson Mteto Nyati was paid R1.3m, Fathima Gany R1,081,000, Claudelle von Eck R1,061,000, Clive Le Roux R1 058 000 and Tryphosa Ramano R1,018,000. Electricity minister Kgosientsho Ramokgopa, Image: Jairus Mmutle/GCIS Other board members - Leslie Mkhabela, Busisiwe Vilakazi, Bheki Ntshalintshali, Tsakani Mthombeni, Ayanda Mafuleka and Lwazi Goqwana - were paid amounts ranging from R933,000 to R676,000. Ramokgopa said the amounts paid included fees for both board meetings and sub-committee meetings. The additional meetings had been convened on an ad hoc basis to address urgent and time-sensitive matters that had required the immediate attention of the board. 'Several of these engagements had been necessitated by unforeseen and evolving developments. These additional meetings had not resulted in any additional payment of fees to the non-executive directors,' he said. The additional meetings had primarily dealt with the group chief executive recruitment, National Transmission Company of South Africa board of directors recruitment, and the unbundling matters. CAPE TIMES