Finance Minister Tito Mboweni on Wednesday assured South Africa that the Government will do “whatever it takes” to ensure stable electricity supply. Photo: Pixabay
Finance Minister Tito Mboweni on Wednesday assured South Africa that the Government will do “whatever it takes” to ensure stable electricity supply. Photo: Pixabay

Budget Speech 2020: Government allocates R230 billion to restructuring electricity sector

By Sizwe Dlamini Time of article published Feb 26, 2020

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CAPE TOWN – Finance Minister Tito Mboweni on Wednesday assured South Africans that the government will do “whatever it takes” to ensure a stable electricity supply.

Delivering the 2020 National Budget, Mboweni said the government had allocated R230 billion over 10 years to achieve the restructuring of the electricity sector. 

“The current electricity shortfall will ease as Eskom finishes critical maintenance. Bid Window 4 of the renewable energy programme is being accelerated. The rapid decline in renewable energy prices will give new momentum to Bid Window 5. 

“Determinations to implement the Integrated Resource Plan of 2019 are finalised and await the concurrence of the National Energy Regulator. It will shortly be possible for municipalities in financially good standing to purchase electricity from independent power producers,” he said.

Commenting on the decision to place SAA under business rescue and the subsequent cuts that the airline's business rescue practitioners have implemented, the minister said: “Sword of Damocles has now fallen on us”. 

Mboweni said placing SAA under business rescue would result in a radically restructured airline. 

“Over the medium term, government has allocated R16.4 billion to settle guaranteed debt and interest. The associated restructuring costs will be reprioritised within the Budget. 

“It is the very sincere hope of many that this intervention will lead to a sustainable airline that is not a burden to the fiscus,” said Mboweni.

Mboweni also announced that cabinet had approved the economic regulation of transport bill in November, which takes us toward a fairer process for third party access into the rail network.  

BUSINESS REPORT

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