DATE OF SUBMISSION: 19 MARCH 2010
NATIONAL COUNCIL OF PROVINCES
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QUESTION 63
QUESTION FOR WRITTEN REPLY
63. Mr K A Sinclair (COPE-NC) to ask the Minister of Energy:
Whether the Government is still committed to support the building of
the Medupi and Kusile power station projects as this is against the
Governmentâs strategic objective of turning to clean and renewable
sources of energy; if not, (a) why has this decision been reversed and
(b) when was it reversed; if so, (i) to what extent will this benefit
a certain investment company (name furnished) and (ii) how?
CW89E
Response
The Government is fully committed to introducing cleaner alternatives
to produce electricity. This commitment is mirrored in the Integrated
Resource Plan 1 promulgated in January 2010.
a) The decision to build Medupi, Kusile was taken by ESKOM in 2006 during
its normal course of business. At the time that the Government
promulgated its Integrated Resource Plan policy in January 2010, the
utility had already contractually committed itself on these projects
and therefore should the utility terminate the contracts there will be
financial penalties due by them.
b) The decision has not been reversed.
(i), (ii) The Department does not get involved in the contractual
details between ESKOM and its contractors. The Department only
formulate policy that provides guidance to the electricity
industry. Further information in terms of the contractual
obligations between the utility and its contractors should be
forwarded to the Department of Public Enterprise.
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