Youth economic council defends Eskom's proposed move to energy ministry

The South African Youth Economic Council has welcomed the proposal adopted by the ANC to move Eskom from the department of public enterprises (DPE) to the department of mineral resources & energy (DMRE).

The idea received backing at the ruling party's 55th national elective conference in December, with human settlements minister Mmamoloko Kubayi describing the mandate as being in line with efficiency and ease of reference. “We want to see SOEs being in their line departments for policy, co-ordination and implementation that is smooth,” she said.

However, energy minister Gwede Mantashe has received backlash for this pending move, including from energy expert Prof Anton Eberhard, who criticised the decision, calling it a “grave mistake”. “The consequence will almost certainly be ongoing power cuts as Eskom is protected at the expense of private investment,” Eberhard wrote recently.

Despite widespread criticism of the proposal, the council describes the proposed move as a long overdue resolution that will “enhance transparency, cut bureaucracy and promote accountability, as a single department will be tasked with looking after the nation’s energy interest”.

“This resolution also means that the confusion caused by frequently contradictory messages from DMRE and DPE on Eskom's problems, as well as the presented solutions, will come to an end.”

Council spokesperson Sthandiwe Msomi added that the resolution acknowledged a need to cut down on “unnecessary government expenditure as it will lead to a much more reduced cabinet”.

“The current notion in the public discourse and mainstream media, advanced by co-ordinated groups, seeks to paint minister Mantashe as an incompetent fossil fuel fundamentalist who is to blame for South Africa's electricity and energy crisis. These claims can only be described as narrow, greed-driven, and personal.

“Our priority as South Africans should be on the science and mitigating factors for achieving energy security, rather than on individuals,” Msomi said.

The council recalled that Mantashe and his DMRE team have often emphasised the necessity of advancing the Integrated Resource Plan of 2019, which promotes an energy mix to provide South Africans access to reliable and cost-effective electricity.

“Coal, gas, nuclear power and renewable energy sources all need to be a component of our grid's energy mix. As a council, we believe that this plan is pragmatic as it seeks to uphold our nation’s energy security,” Msomi said.

“International players and different lobby groups have opposed Mantashe and the DMRE's firm stance on prioritising the needs of our sovereign state and its developmental agenda because their interests are more centred on maximising personal profit through participation in private power generation and less on South Africa's energy security.”

The council reiterated its support for the IRP and the country's existing energy strategy.

“The government's strategic policy direction should not be dictated or influenced by foreign lobby groups or corporations,” Msomi said.

“Attempts and calls by these groupings for South Africa to deviate from its current policies seek to undermine our domestic energy policy sovereignty and satisfy private sector interests from renewable energy independent power producers.

“Eskom being under DMRE is in South Africa's best interest since it encourages a much more streamlined, effective and responsible system of government.”

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