GCIS
Electricity Minister Kgosientsho Ramokgopa says the sharp rise in the repo rate over the past year is a direct result of load shedding.
Ramokgopa was speaking at the Demand Side Management Indaba in Sandton on Tuesday.
The minister of electricity said load shedding was devastating in all aspects of life.
“People are entitled to be aggrieved and that is why we are taking every step possible to ensure we resolve load shedding in our country,” the minister said.
He says the Reserve Bank said the repo rates had been very aggressive as a result of load shedding.
“The Reserve Bank has suggested that one stage of load shedding will result in the contraction in GDP by 5%, which translates to R3 billion”.
A series of hikes means has seen the repo rate jump to 125 basis points higher than it was prior to the Covid-19 pandemic.
Ramokgopa maintains the best solution to load shedding is the Energy Action Plan.
He says President Cyril Ramaphosa unveiled the Energy Action Plan in July last year and is the best opportunity to address load shedding within a short period of time.
He says: “We are introducing additional technologies to help us ensure that the renewables are the best approximate base loads because they will not be able to sustain the economy on their own”.
“Rooftop solar solution is important to build sufficient and productive capacity for the country. We are introducing a financing blended facility to make it possible for the poor to benefit as well.
“ Eskom has been given an R250 billion fiscal relief and is expected to use it for the maintenance and strengthening of the grid.”
