South Africa: Government Working On Reforms to Help Improve Energy Security, Lower Electricity Costs

President Cyril Ramaphosa says government has embarked on far-reaching reforms in the electricity sector to help improve the country’s energy security and lower electricity costs.

Delivering his annual address in the National Council of Provinces (NCOP) in Parliament, Cape Town, on Thursday, President Ramaphosa said the country has done well across almost all municipalities, with between 80 and 100% of households having access to electricity.

“We have embarked on far-reaching reforms of the electricity sector that will establish a competitive electricity market. This will improve energy security and lower the cost of electricity,” he said.

The President also acknowledged that the country has struggled for more than a decade to produce enough electricity to meet demand, which resulted in crippling load shedding.

He highlighted that the cost of building new generating capacity, combined with the effects of State capture and mismanagement, has contributed to a steady rise in the cost of electricity for consumers.

“Even now, NERSA [National Energy Regulator of South Africa] is considering an application from Eskom for tariff increases that will put a further strain on households and businesses.

“It is vital that we settle on a tariff path that enables Eskom to achieve financial sustainability while not placing an undue burden on consumers of electricity,” the President said.

Improving access to healthcare

Turning to healthcare, President Ramaphosa said improving access to quality health care is central to government’s efforts to tackle poverty.

“A healthier nation is a more productive nation. As government, we have prioritised the strengthening of primary healthcare.

“This is an important part of the progressive implementation of the National Health Insurance (NHI), which will give all South Africans equal access to quality health care regardless of their ability to pay,” the President said.

President Ramaphosa said the work underway to implement the NHI includes the upgrading and expansion of public health facilities and the training of qualified and capable personnel.

Education is a powerful tool to end poverty

On education, the President said it is ultimately the most powerful instrument the country has to end poverty.

By investing in the skills and capabilities of young people, he said the nation will be able to break the cycle of poverty that is handed down from one generation to the next.

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“We have done much to make education accessible and affordable for all, including through no-fee schools and funding for tertiary students from poor and working class backgrounds.

“Almost 90 percent of all learners in the public education system attend no-fee schools,” he said.

The President highlighted that a number of students benefiting from NSFAS rose from around 40,000 in the early years of democracy to over 780,000 last year.

“We are now focused on achieving universal access for all children to early childhood development facilities. This is essential to prepare them for school and set them up to be successful in life.

“In basic education, we have prioritised improvements in reading and mathematics,” the President said.

Addressing asset poverty

Due to the nation’s past, the President said millions of South Africans experience asset poverty.

He highlighted that they do not own land or houses or other assets that can be used to raise capital, to start a business or to hand on to the next generation.

“We have started to address the challenge of asset poverty through our land reform programmes and the provision of subsidised housing.

“While the state has provided houses to millions of South Africans since 1994, many people do not have title deeds to these houses,” he said.

The President emphasised that government is working to remove the backlog of title deeds for subsidised housing and reform the system of title deeds to make it more affordable and accessible.

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