Eskom in line for more money to escalate the country’s electrification plan
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JOHANNESBURG - THE DEPARTMENT of Mineral Resources and Energy (DMRE) said yesterday that Eskom was set to provide more households with reliable power during the 2021/2022 financial year through the implementation of the Integrated National Electrification Programme (Inep).
The department said the programme would help to connect 180 000 additional households to reliable energy above the 166 886 connected in 2020/21 financial year.
It said it would allocate R4.8 billion to Eskom and municipalities for the implementation of the Inep.
DMRE said Eskom would receive R2.8bn, while R2bn was allocated to various municipalities.
It said service providers would be given R232.3 million for the implementation of the non-grid electrification programme, while R220.9m had been allocated to municipalities for the Energy Efficiency Demand Side Management programme, said the DMRE.
The department said its budget was slashed to R9.2bn from the R9.6bn confirmed in the 2020 Budget due to reductions across government, particularly on compensation of employees.
The department said the cuts were implemented on the conditional indirect grant to Eskom.
“Earmarked transfer payments to public entities, municipalities, and other implementing institutions accounted for R7.5bn, or 81.6 percent, while the allocation for operational activities, inclusive of procurement of capital assets accounted for R1.7bn, or 18.4 percent,” said the DMRE. Nearly R70m was earmarked for the development of the National Electrification master plan to assist with the implementation of the electrification programme. The DMRE said public entities under its portfolio received a combined allocation of R2.1bn with the Nuclear Energy Corporation of South Africa (Necsa) receiving the lion’s share.
It said Necsa was allocated R952.5m inclusive of R203.6m for the decommissioning and decontamination of past strategic nuclear facilities and nuclear waste and R20m for preparatory work for the new multipurpose reactor project. Loss-making Necsa last year announced that restructuring plans last year as well as the rationalisation of the group into a new business structure. The DMRE said Mintek would be allocated R439.2m, R120.2m of which would be utilised for the rehabilitation of derelict and ownerless mines.
It said the Council for Geoscience would receive R377.1m mainly for operational activities, while the Petroleum Agency of South Africa was allocated R136.3m, Sanedi – R75.2m and the South African Diamond and Precious Metals Regulator R62.03m.
The National Radioactive Waste Disposal Institute and the National Nuclear Regulator were allocated R49.2m and R46.1m respectively.