{"id":6259,"date":"2023-02-22T14:57:10","date_gmt":"2023-02-22T12:57:10","guid":{"rendered":"https:\/\/straton.co.za\/solar\/?p=6259"},"modified":"2023-02-22T14:59:29","modified_gmt":"2023-02-22T12:59:29","slug":"sa-budget-speech-2023-energy-and-eskom","status":"publish","type":"post","link":"https:\/\/straton.co.za\/solar\/sa-budget-speech-2023-energy-and-eskom\/","title":{"rendered":"SA Budget Speech 2023 &#8211; Energy and Eskom"},"content":{"rendered":"<p>On Wednesday, February 22, 2023, Finance Minister Enoch Godongwana presented the 2023 Budget Speech in Cape Town City Hall.<\/p>\n<p>(<a href=\"https:\/\/straton.co.za\/solar\/rooftop-solar-incentives-sa-budget-speech-2023\/\">Click here to read about Rooftop Solar Incentives<\/a>)<\/p>\n<p><strong>He had this to report about Eskom and Energy:<\/strong><\/p>\n<p>The lack of reliable electricity supply is the biggest economic constraint.<\/p>\n<p>Record levels of load shedding were experienced in 2022 \u2013 207 days of load shedding compared to 75 days in 2021.<\/p>\n<p>In response, we are acting decisively to bring additional capacity onto the grid. We are also working to transform the electricity sector to achieve energy security in the longterm.<\/p>\n<p>As part of this, during the MTBPS we announced that the government will take over a portion of Eskom\u2019s debt. We are doing this for two reasons:<\/p>\n<p>Firstly, doing so will ease pressure on the company\u2019s balance sheet, enabling it to invest in transmission and distribution infrastructure. It will also allow Eskom to conduct the maintenance required to improve the availability of electricity.<\/p>\n<p>Secondly, R337 billion of Eskom\u2019s debt is already government guaranteed. Explicitly taking on this debt, will reduce fiscal risk and enhance long term fiscal sustainability.<\/p>\n<p><strong>Details of the Eskom Debt Relief<\/strong><\/p>\n<p>We are proposing a total debt-relief arrangement for Eskom of R 254 billion.<\/p>\n<p>This consists of two components. One is R184 billion. This represents Eskom\u2019s full debt settlement requirement in three tranches over the medium term. Second is a direct take-over of up to R70 billion of Eskom\u2019s loan portfolio in 2025\/26.<\/p>\n<p>Because of the structure of the debt relief, Eskom will not need further borrowing during the relief period.<\/p>\n<p>Government will finance the arrangement through the R66 billion baseline provision announced in the 2019 Budget, and R118 billion in additional borrowings over the next three years.<\/p>\n<p><strong>Conditions <\/strong><\/p>\n<p>Honourable Members, the arrangement is accompanied by strict conditions to safeguard public funds.<\/p>\n<p>These conditions include:<\/p>\n<ul>\n<li>Requiring Eskom to prioritise capital expenditure in transmission and distribution during the debt-relief period.<\/li>\n<li>For the company to focus on maintenance of the existing generation fleet to improve availability of electricity.<\/li>\n<li>That the debt relief be used to settle debt and interest payments only.<\/li>\n<li>And that Eskom implement the recommendations emanating from an independent assessment of its operations, which has been commissioned by the National Treasury.<\/li>\n<\/ul>\n<p>Details of the debt relief, and the reasoning behind the conditions are set out in full in the online annexure.<\/p>\n<p><strong>Municipal debt <\/strong><\/p>\n<p>At the end of December 2022 Municipalities owed Eskom R56.3 billion and the debt is rising. Undertaking a debt-relief of this magnitude without addressing this risk would be counterproductive.<\/p>\n<p>We are working with Eskom to provide a solution to this problem, wherein Eskom will provide incentivised relief to municipalities whose debt is unaffordable.<\/p>\n<p>However, the relief will come with conditions.<\/p>\n<p>And to avoid a repeat of debt build-up over time, the relief will attach measures, including the installation of prepaid meters, to correct the underlying behaviour of nonpayment and operational practices in these municipalities.<\/p>\n<p>Eskom\u2019s long-term financial viability depends on its customers paying their dues.<\/p>\n<p>National Treasury will publish details for accessing the debt relief in a circular in March 2023. Implementation will start from 1 April.<\/p>\n<p>More generally, the culture of non-payment, not only by municipalities but by all organs of state and individual household customers is concerning.<\/p>\n<p>Such behaviour undermines and cripples our institutions and makes it impossible for them to deliver services.<\/p>\n<p>To change this, the National Treasury is exploring ways to encourage all to improve their behaviour and do the right thing.<\/p>\n<figure id=\"attachment_6261\" aria-describedby=\"caption-attachment-6261\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/strtaon.co.za\/solar\/\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6261\" src=\"http:\/\/straton.co.za\/solar\/wp-content\/uploads\/2023\/02\/Straton_Solar_Enoch_Godongwana_Budget_Speech_2023.jpg\" alt=\"Straton Solar Enoch Godongwana Budget Speech 2023\" width=\"600\" height=\"200\" srcset=\"https:\/\/straton.co.za\/solar\/wp-content\/uploads\/2023\/02\/Straton_Solar_Enoch_Godongwana_Budget_Speech_2023.jpg 600w, https:\/\/straton.co.za\/solar\/wp-content\/uploads\/2023\/02\/Straton_Solar_Enoch_Godongwana_Budget_Speech_2023-300x100.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-6261\" class=\"wp-caption-text\">Straton Solar &#8211; Enoch Godongwana Budget Speech 2023<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Wednesday, February 22, 2023, Finance Minister Enoch Godongwana presented the 2023 Budget Speech in Cape Town City Hall. (Click here to read about Rooftop Solar Incentives) He had this to report about Eskom and Energy: The lack of reliable electricity supply is the biggest economic constraint. Record levels of load shedding were experienced in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[2],"tags":[],"class_list":{"0":"post-6259","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-solar","7":"entry","8":"has-post-thumbnail"},"jetpack_publicize_connections":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"Alan","author_link":"https:\/\/straton.co.za\/solar\/author\/alan\/"},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p5HvVd-1CX","jetpack-related-posts":[{"id":737,"url":"https:\/\/straton.co.za\/solar\/who-will-eskom-sell-electricity-to-in-future\/","url_meta":{"origin":6259,"position":0},"title":"Who will Eskom sell electricity to in future?","author":"Alan","date":"22 September 2015","format":false,"excerpt":"Eskom has struggled to supply South African businesses and homes with electricity in recent times, with load shedding a daily worry for citizens. The unstable electricity supply has already cost South Africa billions, and our economic growth has slowed to worrying levels. The impact on the local manufacturing and mining\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1061,"url":"https:\/\/straton.co.za\/solar\/householders-installing-solar-to-reduce-their-electricity-bills-in-preference-to-avoiding-load-shedding\/","url_meta":{"origin":6259,"position":1},"title":"Householders installing solar to reduce their electricity bills in preference to avoiding load shedding","author":"Alan","date":"24 February 2016","format":false,"excerpt":"SA\u2019s electricity consumers are becoming increasingly fed up, making their own plans for supply and quitting the grid \u2014 years before the cost is expected to almost double. If the National Energy Regulator of SA announces that Eskom can hike its tariffs by the additional 8% it is requesting this\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":794,"url":"https:\/\/straton.co.za\/solar\/solar-power-adoption-could-signal-end-of-eskom\/","url_meta":{"origin":6259,"position":2},"title":"Solar Power adoption could signal end of Eskom","author":"Alan","date":"8 October 2015","format":false,"excerpt":"The risk of electricity users coughing up for solar power and battery systems in greater numbers \u201cwould be the end of the power company as we know it\u201d, and could seriously undermine Eskom\u2019s business model. This is according to Barry MacColl, one of Eskom\u2019s most senior managers. Energy analysts and\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/05\/78cd6fbcf6fb2ba93c813682fd618a74_L.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/05\/78cd6fbcf6fb2ba93c813682fd618a74_L.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/05\/78cd6fbcf6fb2ba93c813682fd618a74_L.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":111,"url":"https:\/\/straton.co.za\/solar\/eskom-alone-cannot-solve-sas-energy-challenges\/","url_meta":{"origin":6259,"position":3},"title":"Eskom Alone Cannot Solve SA&#8217;s Energy Challenges","author":"Alan","date":"18 December 2014","format":false,"excerpt":"In the past 20 years, our country has made significant strides in consolidating democracy and rolling out basic services such as electricity particularly to those deliberately excluded from these services by apartheid. Since 1994, access to electricity has increased from just over 50% of households to 86%. According to Census\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6315,"url":"https:\/\/straton.co.za\/solar\/ramokgopa-i-am-confident-about-our-ability-to-address-the-crisis\/","url_meta":{"origin":6259,"position":4},"title":"Ramokgopa: \u201cI am confident about our ability to address the crisis\u201d","author":"Alan","date":"22 March 2023","format":false,"excerpt":"Minister in the Presidency responsible for Electricity, Dr Kgosientsho Ramokgopa, believes that Eskom employees are the heart of resolving the ongoing energy crisis. \u201cMy view has always been the biggest asset for any organisation is its workers and the reason we\u2019re starting from the bottom up is to appreciate and\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/01\/Eskom_Candle_Power.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/01\/Eskom_Candle_Power.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/01\/Eskom_Candle_Power.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/straton.co.za\/solar\/wp-content\/uploads\/2015\/01\/Eskom_Candle_Power.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":244,"url":"https:\/\/straton.co.za\/solar\/daily-maverick-comments-on-eskoms-promise-of-load-shedding-now-high-electricity-tariffs-later\/","url_meta":{"origin":6259,"position":5},"title":"Daily Maverick comments on Eskom&#8217;s promise of load-shedding now, high electricity tariffs later","author":"Alan","date":"19 January 2015","format":false,"excerpt":"Most of the maintenance is done during summer, Matona said, as the reduced demand allows them to take down as many units as possible. However due to the constraints in supply, Eskom has exhausted its reserves and therefore maintenance needs to take place during rotational load-shedding. It is not known\u2026","rel":"","context":"In &quot;Solar&quot;","block_context":{"text":"Solar","link":"https:\/\/straton.co.za\/solar\/category\/solar\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/posts\/6259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/comments?post=6259"}],"version-history":[{"count":3,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/posts\/6259\/revisions"}],"predecessor-version":[{"id":6265,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/posts\/6259\/revisions\/6265"}],"wp:attachment":[{"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/media?parent=6259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/categories?post=6259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/straton.co.za\/solar\/wp-json\/wp\/v2\/tags?post=6259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}