PRETORIA SAYS IT’SNOT READY TO SIGN AGREEMENTS WITH INDEPENDENT POWER PRODUCERS

PRETORIA, The South African government says it is not yet ready to sign agreements to buy electricity produced by Independent Power Producers (IPPs) as it fears that it is likely to impact negatively on the balance sheet of State-owned national power utility Eskom.

The Department of Energy and Department of Public Enterprises, along with Eskom, said this when briefing Parliament's Energy Committee on the signing of Power Purchase Agreements (PPAs) with the IPP's, who produce energy mainly from renewable sources.

The Department of Energy said talks were continuing with the IPPs to ensure that any agreement signed would not impact negatively on the government's objectives of lower electricity tariffs, Black Economic Empowerment and job creation.

Its acting Director-General, Tshediso Maqubela, also said the current situation of a power surplus also contributed to making the process difficult. The demand situation has changed. There is no doubt that there is a surplus, so we can't proceed with business as usual, so we have to change pace. We are agonising as a team about the cost of energy and its impact on jobs in this country.

Source: NAN NEWS NETWORK

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