Energy Prices Increase for South Africans to pay R1 Trillion for nuclear programme

Energy Minister Tina Joemat-Pettersson recently said that South Africa will start a nuclear build programme in 2015, in a bid to generate an additional 9,600MW of electricity. The country will have six new nuclear power plants by 2030, which will cost between R400 billion and R1 trillion to build, according to a report by Reuters.

The Department of Energy and the South African Nuclear Energy Corporation (NECSA) appeared before the Portfolio Committee on Energy on Tuesday (2 June) to brief it on the Nuclear Build Programme.

Energy Minister Tina Joemat-Pettersson recently said that South Africa will start a nuclear build programme in 2015, in a bid to generate an additional 9,600MW of electricity.

The country will have six new nuclear power plants by 2030, which will cost between R400 billion and R1 trillion to build, according to a report by Reuters.

“From today’s briefing it is clear that government has brazenly chosen to pursue the nuclear build despite it being fraught with financial and infrastructural limitations,” said DA Shadow Minister of Energy, Gordon Mackay.

“Of great concern are the cagey and evasive responses provided by the Department on the proposed financing models for what will be SA’s most expensive public procurement process ever,” he said, noting only a single slide in the presentation providing information on the projects funding.

“In the slide it is suggested that the DoE, through Eskom, intends to finance this programme by way of ‘tariff recovery at early stages’ – also known as the Medupi/Kusile model where the consumer carries the cost of the new build through tariff increases.

“From this information, one can only conclude that the DoE intends to fund the nuclear programme through massive electricity price hikes,” the shadow minister said.

The National Energy Regulator (Nersa) is set to make a decision whether it will authorise Eskom’s application to hike tariffs by 25.3% on June 29, 2015.sa

“This will inflate the cost of running a business, cause widespread job losses, and make electricity unaffordable for many South Africans,” Mackay said.

He said that at an estimated cost of R1 trillion before cost over runs, the choice to go nuclear “is nothing short of absurd”.

Minister Joemat– Pettersson’s announced in her budget speech a week ago, that her Department will begin with the nuclear procurement process in the second quarter of this financial year.

The Minister expects to present the outcome of the procurement process to Cabinet by year end.

Considering South Africa is not close to being ready to roll out nuclear to the public, Minister Joemat-Pettersson’s apparent insistence and haste is alarming and, frankly, irresponsible,” the DA said.

The DA said it is primarily concerned with the impact of the proposed Nuclear Build Programme on SA’s potential economic growth as well the impact on the long-term electricity pricing path.

Source: http://businesstech.co.za

The Funny thing about Load Shedding

Did you hear about that joke of a President, the Electrical Company Director and Energy Minister was in a meeting when the lights cut off. The Secretary ran into the boardroom and exclaimed, “so sorry sir its load shedding”. They all looked at her in amazement as if she was deluded.

loadsheddingDid you hear about that joke of a President, the Electrical Company Director and Energy Minister was in a meeting when the lights cut-off. The Secretary ran into the boardroom and exclaimed, “so sorry sir its load shedding”. They all looked at her in amazement as if she was deluded.

Is that not hilarious? The punch line is the fact that currently Johannesburg coined its slogan, “A World Class City in Africa” may just be as primitive as the Bronze Age. It takes a World Class City to have the luxury to switch on a light. South African do have light switches…yes, fancy expensive ones but no electricity.jozi

This World Class City does not know how to produce enough electricity for all South Africa. Since 2008, load shedding has cost the economy an estimated R300 billion. Thousands have lost their jobs as businesses have had to scale down, or scale back on investments. In addition to this, the international reputation as an investment destination has been seriously damaged by the government’s inability to service the country’s energy needs.

The funny thing about load shedding is that the electric gates, fences and CCTV cameras are all affected. Most foreigners don’t realise that load shedding means that even the traffic signals don’t work. The property I’m currently residing at has biometric scanners and the latest technology in security – all dependent on Electricity. I don’t like to imagine what could be the consequences of a robbery or an invasion from a neighbouring country?

In this World Class City Electricity is NOT a basic need only a luxury.