TRUTH IN ENERGY (TIE) | Freedom Foundation

TRUTH IN

ENERGY (TIE)

Implementation Steps:

✔ Immediate Electricity Trading: Enable real-time electricity trading to tackle power shortages.

✔ Standards Regulation: Redefine NERSA’s role from market regulator to standards enforcer.

✔ Economic Considerations: Ensure the IRP reflects economic realities and mitigates risks like non-payment and corruption.

Submission Structure:

Part 1: Broad electricity policy framework.

Part 2: Technical aspects of energy policy.

Part 3: Climate and economic considerations.

Freedom Foundation's Role:

Apolitical Stance:

Our work remains strictly apolitical and independent of vested interests in energy policy.

Expertise and Legacy:

Under Leon Louw’s leadership, the Freedom Foundation continues the FMF’s tradition of advocating for optimal electricity policies, drawing on decades of expertise.

Key Points:

Historical Context:

The IRP concept dates back to when Eskom had a statutory monopoly over electricity production in South Africa. This model is now outdated and needs revision to suit the current market dynamics.

Government’s Challenge:

The government faces tough decisions on how to improve electricity generation, transmission, and supply within limited resources, as highlighted by the lack of budget allocation for the IRP in the next three years.

Financial Realities:

The Treasury cannot fund the IRP, similar to the National Health Insurance (NHI). These high-cost proposals need practical solutions.

Proposal:

Our submission outlines the best approaches to achieve the government's objectives, focusing on the 'how' rather than 'whether.'

Illuminating Truth:

Powering Transparency in Energy

Introduction

Welcome to our comprehensive proposal aimed at transforming South Africa's energy landscape. Our plan focuses on realistic and achievable goals within the constraints of the real world. Here’s what we propose:

Maximizing Existing Resources:

Utilize current resources efficiently.

Minimizing Government Burden:

Allow the government to focus on higher-priority benefits by reducing its burden.

Ensuring Secure Supply:

Guarantee universal electricity supply with high quality and affordability

Ending Outmoded Monopolies:

Shift away from outdated monopoly systems, as seen in advanced countries.

Optimising the Electricity Market:

Develop a dynamic and competitive electricity market.

Key Proposals:

IRP Conceptual Flaws:

The current IRP model is unsuitable for dynamic electricity markets and should be phased out.

Eskom’s Role:

Eskom should operate independently and competitively within a liberalized market.

Market Liberalisation:

Open the energy market to all investors, not just renewables, and reduce regulatory control.

Private Sector Involvement:

Encourage private sector generation across various energy sources, ensuring a level playing field.

Conclusion:

The Freedom Foundation, Izwe Lami, and Truth in Energy appreciate the opportunity to contribute to this critical dialogue. Our submission is dedicated to finding practical, effective solutions for South Africa's energy future, fostering an open, competitive, and efficient electricity market.