The Cabinet has approved the newly-gazetted regulations governing the National State of Disaster on Energy, but did not go as far as announcing whether any funds are to be reprioritised from any department towards resolving the crisis.
THE Cabinet has approved the newly-gazetted regulations governing the National State of Disaster on Energy, but did not go as far as announcing whether any funds are to be reprioritised from any department towards resolving the crisis.
This is a departure from the approach the government took when it implemented the National State of Disaster on Covid-19 pandemic, as it reprioritised and made additional allocations of more than R20 billion to respond to the pandemic.
Minister in the Presidency Mondli Gungubele on Thursday briefed the media following a Cabinet meeting on Wednesday to discuss a number of issues affecting the economy, including the ongoing energy crisis.
Gungubele said the commitments from the State of the Nation Address and the Budget allocations last month strengthened the capability of the state to fast-track interventions outlined in its Energy Action Plan.
The Energy Action Plan was developed through extensive consultation and endorsed by energy experts as providing the best and fastest path towards energy security.
Gungubele said that if any reprioritisation happened, it would be on an ad-hoc basis depending on the engagements between the relevant departments in the economic cluster.
“The reprioritisation of funds and maybe taking a certain approach on procedural requirements will depend on issue by issue, and then will be followed in line with the regulations,” Gungubele said.
“The regulations are very clear when you should reprioritise and when you should not. The purpose of the declaration (of the State of Disaster) is to fast-track execution and to minimise impact.
“Different departments are assessing with regard to how the regulations are assisting them to ensure that from their respective departments they minimise impact. Whether there will be reprioritisation of funds or not, it will depend on issue by issue.
“The only thing Cabinet could support is the regulations to be applicable as enunciated,” Gungubele said.
The regulations were gazetted by Cooperative Governance and Traditional Affairs Minister Dr Nkosazana Dlamini Zuma on Monday.
The objectives of the regulations are to provide relief to the public by minimising the impact of load shedding on livelihoods, the economy, service delivery, and provide measures to enable the connection of new generation capacity while also improving Eskom’s plant performance.
Eskom’s ageing coal-fired power stations have plunged the country into an unprecedented electricity supply crisis, with daily heightened power cuts crippling economic activity.
Meanwhile, Gungubele said the recently published National State of Disaster regulations allowed the government to respond more effectively and timeously to deal with the severe electricity supply constraints.
Moreover, he said the regulations ensure transparency and accountability by enabling departments to guide their sectors.
“The Cabinet understands the frustration of citizens and businesses over the inconvenience and disruptions caused by persistent load shedding,” he said.
The debt relief of R254bn subject to strict conditions would relieve extreme pressure on Eskom and enable it to undertake necessary investment and maintenance, he said.
“Tax incentives to rollout rooftop solar panels, not only assist households and businesses in generating electricity for their own use but also supports the national grid.
“Under the expanded incentives for businesses, investments in renewable energy will allow businesses to claim a 125% deduction in the first year for all renewable-energy projects, with no thresholds on generation capacity,” the minister said.
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