Chairperson and hon members, yes, government is considering the introduction of a number of mechanisms that will ensure that tariffs do not escalate in a manner that has an adverse impact on economic growth and job creation. An interdepartmental team has been established to consider the best approach for determining the next round of electricity tariff increases for Eskom, due to take effect from the beginning of April 2013.
This involves developing a model that seeks to balance the socioeconomic impact of increasing electricity prices, the country's competitiveness, Eskom's financial viability and the necessary policy considerations for implementing the integrated resource plan. The future price path will take into cognisance the competitiveness of the South African economy, based on economically sustainable electricity tariffs that balance macroeconomic and sociopolitical impacts.
It is important that the price path provides the regulatory certainty that is crucial for investment in the power sector. Once the price path has been outlined, there will be certainty for the next 20 years regarding future electricity tariffs, as opposed to the current practice, which determines tariffs every three years. Further details in this regard can be obtained from the Minister of Energy. I thank you for your attention.
Thank you, Chair.
Ndiyabulela Sekela-Mongameli ngempendulo kwaye le nto yinto esiza kuyidlulisa ebantwini xa siphuma sisiya kwenza umsebenzi wethu ekuhlaleni. Umbuzo wam olandela lowaa wokuqala uthi: Ingaba urhulumente uza kuba nalo na igalelo lokuncenda abantu, ingakumbi kwezi solar geysers, njengoko ebesele eqalile u-Eskom? Ezi geysers bezinceda ukucutha iindleko zombane. Ingaba urhulumente unazo na inzame azenzayo ukuncedisa le nkqubo ukuba iphinde iqale ekuqaleni, ingakumbi kwezi zindlu zabantu ababefudula bengenanto kuqala? (Translation of isiXhosa paragraph follows.)
[Thank you, Deputy President, for the response, which we will relay to the people when we are doing our constituency work. My follow-up question is: Will government have a contribution towards the acquisition of solar geysers as Eskom has already started to assist the people? These geysers have helped reduce electricity consumption and costs. Does government have a plan to support this programme so that it resumes, especially in the houses of the historically disadvantaged?]
Thank you, hon member. Yes, indeed, through the Department of Economic Development, there is a drive to get solar panels manufactured locally, as well as to ensure, particularly for poor communities who reside in areas that have good sunshine, not only that solar geysers are supplied, but that the lighting of their homesteads should also be derived from solar energy. Thank you.
Chairperson, may I ask the Deputy President, through you, why Eskom is beginning to talk about a 27% increase in tariffs for this coming year? Is it relevant? Is it fact or is it not in the pipeline, and will there be political intervention for a reasonable increase for the general public and the economy?
No, I am not aware of any 27% increase. As you know, the process is that the National Energy Regulator of South Africa, Nersa, would consider recommendations. In fact, my own information is that, unlike in the past, the idea this time would be to try and spread the tariffs over a five-year period rather than a three-year period. So, that would ensure that the tariff increases are kept at a very low level. That is the information that I have.
Thank you, Chair, and thank you, Deputy President.
Ke botsa gore re sa ntse re bua ka Eskom, gore Medupe le Kusile, re ka solofela gore di tla tsena leng mo tirisong go tla go thusa ka neelano ya motlakase ya Eskom? [If we are still talking about Eskom, when can we expect Medupi and Kusile to start operating so that they can help Eskom with the supply of electricity?]
Will the interpreters there please interpret correctly and swiftly so that we can hear what the members are saying? I am not sure whether the Deputy President got the follow-up question or not.
Yes, I did.
I was trying to follow but I couldn't hear.
The question is about the timeline for Medupi and Kusile - when will they be in commission or come online? My information is that, God willing, if there are no major unnatural or man-made delays, these power stations should come on stream as planned, because construction has been progressing within the set timeline. So, we do not think that there would be any reason to extend the timeline for the commissioning of these new coal-fired power stations. It will be within the set timeline. That is, as we say, In Shaa Allah [God willing].
Measures to reduce and/or curb university registration fees
2. Ms N D Ntwanambi (ANC) asked the Deputy President:
Whether the government has any measures in place to reduce and/or curb university registration fees to create more opportunities for the youth to (a) access higher education and training and (b) expand their chances of breaking the generational poverty that characterises many poor black households, especially Africans; if not, why not; if so, what are the relevant details? CO90E
Chairperson and hon members, this is a question that, correctly speaking, the Minister of Higher Education and Training would be better placed to deal with. However, I'm informed that university fees are determined through each university's admission policy and therefore differ from institution to institution.
The Minister of Higher Education and Training has established the ministerial committee for the review of funding to universities, which is also tasked with looking into the matter of the student fee increases and the desirability of capping such increases. Once the committee has completed its work, it will make recommendations to the Minister on whether a national policy to regulate university fees should be put in place. Over the years tertiary fees have been increasing as universities try to balance their budgets.
To alleviate the plight of poor students, however, government provides funding to the National Student Financial Aid Scheme to enable poor and academically deserving students to attend universities. These university loans and bursary allocations increased by 27% in the 2012-13 financial year. The total number of poor but academically deserving students assisted was about 150 000. It is expected that this will increase by 5% annually. The Department of Higher Education and Training is also investigating the feasibility of a central application service. One of the anticipated benefits of such a service will be the standardisation of one application fee for all universities. This will assist poor students in extending their opportunities and choice.
Chairperson, I just wanted to ask a follow-up question in relation to the Deputy President's comments on the standardisation of application fees. There are disparities in the universities. A BA degree at the University of the Western Cape and a BA degree at the University of Pretoria do not cost the same. Is it not necessary to look into that as well, so that there will be comparability of courses in the same curriculum? A BA degree at one university must be more or less the same as at another university in the country. At the moment there are a lot of disparities within the same "programme". Is it not necessary for the task team to look into that as well?
As much as that is a good follow-up question, we must bear in mind that the Deputy President did say in his opening that actually this was a question that would be better answered by the relevant department. But I will not disagree if the Deputy President would like to respond.
Chairperson, indeed, when the ministerial committee for the review of funding to universities submits its report and considers its recommendations, these are some of disparities that are likely to receive attention. That is why the question arises of whether there is a need to cap the increase of these fees. The key question is really to ensure that access to tertiary education is made easier for all South African citizens, regardless of their social standing or the fortunes of their families.
Chairperson, hon Deputy President, I would just like to hear your thoughts about the strikes on university campuses. One of the issues is the readmission requested by students who failed. I feel this is an injustice to the newcomers. So, what are your thoughts about the readmission of the students who failed?
Chairperson, I do know that the Minister of Higher Education and Training is looking at open universities as well, so that where challenges arise of accommodating students who need to repeat, the denial of that opportunity should not result in the termination of their studies. So, they should have options outside of the universities where they would have been registered. They should be able to go into open universities and continue with their studies until they complete them.
Chairperson, I bear in mind what the Deputy President said at the beginning. However, my question deals with universities making their own decisions on how and what they will charge for registration. Can the Department of Higher Education and Training be prescriptive to universities regarding set registration fees and so on?
That is another question that should go directly to the Minister of Higher Education and Training, but you have already made that opening statement.
Chairperson, I think the reason for establishing this ministerial committee for the review of funding of universities is that it is funding from the fiscus and, as much as is possible, there has to be a more or less standardised fee structure. Differences may arise, for example, in the extent to which each institution does research. Therefore funding may also come from the private, corporate world and so on. But the idea is really to obviate the situation in which some universities become inaccessible, even when they have excess space, simply because of the fees, whereas others are inundated and overloaded because their fees are more reasonable. In other words, the question is: Should we leave that to market- determined fees only or should we try to influence that? Of course, this would not happen without consultation and discussions with the authorities in charge of these institutions.
Steps taken to address matters arising from Public Service Commission Audit Report in February 2007 relating to monitoring and evaluation processes
3. Mr D B Feldman (Cope) asked the Deputy President:
With reference to the Public Service Commission Audit Report in February 2007 regarding the government's poverty reduction projects and programmes (details furnished), what has the government done to address the (a) discrepancies in the database and (b) lack of a uniform system of norms, standards and indicators that can be easily accessed for monitoring and evaluation processes?