BLSA lauds announcement on energy security and SAA partnership

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Business Leadership South Africa (BLSA) welcomes yesterday’s announcement by President Cyril Ramaphosa that the licensing exemption threshold for own generation under schedule 2 of the Electricity Regulation Act, (ERA) will be lifted to 100MW.

The own generation threshold was higher than business had hoped for and means that firms such as mines and large industrial companies, currently crippled by load shedding, can see a light at the end of the tunnel.

They are now able to build their own power plants to supply electricity for their needs, including wheeling it over the Eskom grid if they generate it in one place and consume it in another place.

This move will also enable the state-owned enterprise to undertake the work necessary to restore its generating capacity and meeting remaining demand.

BLSA also lauds the announcement today by public enterprises minister Pravin Gordhan on the sale of 51% of SAA to Takatso Consortium. The public-private partnership puts 51% of the airline into the hands of the private sector and therefore means that the fiscus is now largely off the hook for the future performance of the airline. SAA’s new owners will have full authority to run the airline on commercial principles.

Both announcements are incredibly positive and demonstrate a recommitment by government to charting a path that puts SA Inc first and strengthens our business case for investment. The prospect of energy security and a rational airline market are now real, said BLSA CEO, Busi Mavuso.

For more information or interviews with BLSA representatives, please contact please contact Thuthuka Maseko as Tmaseko@businessleadership.org.za

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