Even though he believes the action plan is realistic, he wonders how the plans will be implemented as the implementation plans were not mentioned in detail by Ramaphosa during his address. The action plan that was outlined, includes enabling private investments in energy generation. Krugell explained that the outcome of private investment will give a boost to the country’s economy.

“Businesses will also benefit immensely from these plans,” he explained. Krugell, North-West University Economics Professor, stated that what load-shedding has been doing to businesses, was limiting their spaces of operations or costing them more. So, a more stable supply of electricity will help the productivity of most businesses. As far as the plans are concerned, he believes they have been on the table for a while but the implementation process has been missing. “We need to hear more on how the plans that the President has proposed, will be executed.”

Although the plans will ease load-shedding in the medium-term, Krugell clarified that it will take 18 to 24 months for many of the plans to come to life. So, the action plan is not a short-term one. The president’s address also included plans to restructure Eskom. In his address, he explained the restructuring will result in three entities, an electricity generation entity, an electricity transmission entity, and an electricity distribution entity. When it comes to enabling private investment, a special legislation will be tabled in Parliament on an expedited basis to enable the easing of regulatory hurdles and facilitate investment in new generation capacity for a limited period.

In Krugell's closing remarks, he stated it has to be kept in mind that there is a division between people favouring government control and those who are in the favour of the market. “From the plans that were outlined on Monday 25 July, Eskom's management role will look very different in the future and we will be closer to a private and decentralised energy market.”

Another plan that was outlined to put an end to load-shedding was for businesses and households to invest in rooftop solar. For it to be possible, Ramaphosa stated that Eskom will develop rules and a pricing structure – known as a feed-in tariff – for all commercial and residential installations on its network.

OFM News