S.Africa aims to connect 1.4 million households despite Eskom woes - CNBC Africa

S.Africa aims to connect 1.4 million households despite Eskom woes

Southern Africa

by Trust Matsilele 0

The department of energy is set to connect 1.4 million households despite electricity woes from the country’s power utility Eskom.

This target is part of the department of energy’s medium term strategic framework plan.

Treasury’s mid-term budget policy statement said there had been delays in the completion of some earlier projections due to administrative challenges.

“Delays are due to administrative obstacles such as lead times for the procurement of material. However, performance is expected to improve in the second half of the year,” said Treasury.

 The mid-term budget statement also noted that the country was moving in the right direction in addressing power deficits.

“In the first six months of the year, four substations were completed and four substations were upgraded. Two integrated energy centres (at Ngwaabe and Tembisile) are currently under construction.”

“The Ngwaabe centre is expected to be completed by November 2014, while the Thembisile centre is expected to be completed by 31 March 2015.”

The department of energy said it had upgraded eight kilometres of existing medium voltage power lines by mid-year, which is significantly below the annual target of 220 kilometres.

The mid-term statement said about 4.970 million rand had been rolled over for payments to service providers to conduct a study on the energy footprint and energy savings potential in heavy industries.

“The study was conducted to support evidence based policy development in the integrated energy plan. In addition, the study is expected to inform the future targets of the national energy efficiency strategy from 2016 to 2030.”

The department of energy also reported receipts in the first six months of 2014/15 at 57.8 per cent of the adjusted revenue estimate.

This is in comparison with mid-year revenue in 2013/14 which was 59 per cent of the 2013/14 adjusted estimate.

“Compared to the first six months of 2013/14, revenue over the same period in 2014/15 increased by 162 thousand rand or 9.4 per cent.”

“This was mainly due to an increase in transactions in financial assets and liabilities as well as the interest earned on bank accounts.”

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