Note to Editors: Please find an English soundbite by Cllr Themba Fosi here
From statements made by the ANC Tshwane Deputy Mayor Bonzo Modise, it seems that the city no longer sees a role for the private sector in firing up Rooiwal and Pretoria West power stations.
Under former mayor Cilliers Brink, the DA and our coalition partners in Tshwane undertook a process to source private sector investment and expertise to unlock the potential of the power stations. While the Rooiwal coal-fired power station is substantially intact, and has been kept under maintenance, Pretoria West provides a chance to generate alternative, clean power.
Both these facilities offer an inlet into the national grid, and so the city has to remain open to whatever solution could help us to diversify the supply of energy.
In January last year, Tshwane’s council approved a 40-year lease on the power stations that could form the basis for a private concession to independent power producers (IPPs).
To enable the city to get the best possible deal on the power stations, money was budgeted in 2024/25 for the appointment of an independent transactional adviser who could inform a request for proposals. But after the removal of the DA-led coalition in Tshwane in September 2024, the process to appoint such a transactional adviser ground to a halt.
In his reply to the Tshwane budget debate last month, Deputy Mayor Modise said that the city would now appoint Eskom as transactional adviser on the power stations. Similar statements were made by the leader of government business, Alderman Aaron Maluleka.
Given that Eskom could be one of the bidders on the 40-year concession on the power stations, and taking into account its existing monopoly on power generation, having Eskom as transactional adviser would be a possible conflict of interest.
Moreover, Eskom’s ability to raise money from banks and the capital markets to undertake upgrades at power stations is severely limited.
Last week the DA pointed out the excessive tariff that Tshwane will charge Independent Power Producers for wheeling on the city’s network (especially compared to what other metros charge).
Read together, the decision to appoint Eskom as adviser on the operation of the power stations and the disincentive of the wheeling charge seem to suggest that Tshwane’s ANC-coalition is not interested in diversifying the city’s energy supply.