Eskom still faces resistance to transition

Public enterprises minister Pravin Gordhan

“Eskom is acting wherever it can against corruption, both in terms of individuals and companies. Part of the actions to stop corruption requires effort and assistance from the National Economic Development and Labour Council (Nedlac) partners, working together with public enterprises and Eskom leadership, to reinstate public and business confidence,” says Pravin Gordhan, public enterprises minister.

As part of the work to stabilise electricity supply, Gordhan says government is currently procuring additional generation capacity from the market to alleviate the current shortages, and bring much needed capacity to rebuilding the economy.

Social compact

Gordhan made the remarks at the Nedlac 25th Annual National Summit on Tuesday, where he, on behalf of government, signed the Framework Agreement for the Social Compact on supporting Eskom for Inclusive Economic Growth.

Gordhan emphasised the importance of energy security in the economy and the need to have a discussion with social partners on the cost of electricity, and the role it has in stimulating growth in different business sectors.

He said the social compact will allow partners to work together on “ust transition projects for the repurposing of old coal-powered stations, as part of mitigating against climate change, and transitioning them towards clean coal technologies.

“This will ensure that we lessen the impact of the lack of economic activity because of the closure of coal-powered stations. The partners must not forget the communities that are reliant on the economic activities in the areas that will be affected by the “just transition”, which will require the partners to make more effort to get alignment from communities in those towns,” the minister says.