SA to honour power deal with Namibia

As pressure mounts on the South African government to find solutions to the country’s energy crisis, the country’s electricity minister Kgosientso Ramokgopa reiterated over the weekend that South Africa will fulfil its electricity supply obligations to Namibia and has no plans to pull the plug on its neighbour.Despite its own energy woes, South Africa is locked in a power purchase agreement with Namibia, one that has in recent months been the subject of public debate.Some quarters have questioned why South Africa is not declaring a force majeure on the deal in order to satisfy its domestic electricity demand.Credible partnerSpeaking on the margins of the African National Congress’ national executive committee meeting over the weekend, Ramokgopa pledged that SA will see out the agreement, which expires in 2025."We will honour our obligations because South Africa is a credible player in international relations, conventions and commitments we have with other sovereign jurisdictions. We have not reached a stage where we are considering declaring a force majeure; it’s a conversation that will happen at the level of government, but we are not there yet," Ramokgopa said during a press conference in Boksburg on Saturday morning.He was responding to questions from the press on whether SA is considering pulling out of the electricity deal with Namibia.Ramokgopa, who also admitted that it is not possible to end load shedding by the end of the year in South Africa, was confident that his country has sufficient resources to honour the agreement."For now, we have everything in our arsenal to address this situation," he said.Tough taskRamokgopa said while the electricity cuts would still be effective in December in South Africa, the utility was working hard to ensure that they were not as drastic."So the long and short of it is that, no, load shedding will still be with us even by the end of this calendar year, but we will do everything possible to ensure that its intensity is not as severe, so that we get the South African economy going."Ramokgopa said several interventions were being implemented, including the addition of 4 000 megawatts of power to the grid in the next six months."4 500 MW relieves us of that pressure, five interventions and then six to 18 months conservatively, 12 500 MW... there&#039;s a multiplicity of interventions – about eight of them that are possible."Tariff hike headacheNamibia’s electricity users are also finding it increasingly hard to keep their lights on.This comes after Namibia Power Corporation (NamPower) requested a 16.87% increase in electricity tariffs for the 2023–24 year. The power utility cited inflation as one of the primary reasons for the planned tariff hike.This move, however, is not sitting well with one of the country’s biggest agricultural unions, as it feels the proposed hike is more than double the inflation rate.There are further concerns that the price hike will push up the cost of food production, which will subsequently result in food prices hitting the ceiling.Under considerationThe Electricity Control Board (ECB) is currently considering the proposal; a decision is expected by the end of next week."Based on this approved bulk tariff from NamPower, the other power suppliers, such as the Regional Electricity Distributors (REDs) and local authorities, must also submit their applications for power rate adjustments to the ECB for approval," the Namibai Agricultural Union said.Stakeholders now have the opportunity to submit objections to the ECB."Given the current state of the economy, the high unemployment rate and the challenges in which farming finds itself after a very limited rainy season, the NAU, on behalf of its members, seriously objected to the excessive increase," the NAU said.The union said it believes that the ECB will thoroughly consider the state of the country&#039;s economy and the objections of stakeholders and will approve a responsible power tariff to be applied as from 1 July.

SA to honour power deal with Namibia

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Namibian Sun 2025-06-18

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SA to honour power deal with Namibia

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Namibian Sun 2025-06-18

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