Adjustment to RE IPP contingent liabilities in the Budget Review welcomed by SAPVIA

Posted on 02/23/17 in Current Activities, Downloads, general, Press Releases, No Comments

SAPVIA MEDIA STATEMENT
For immediate release.

SAPVIA welcomes the work done by Treasury over the last few months around the recalculation of the contingent liabilities attributed to renewable energy IPPs which has been misrepresented to the public by Eskom.

The renewable energy industry has engaged with Treasury officials over the last few months on this matter and we are pleased with the adjustment in the statistical tables of the Budget review. We also note with interest the upward adjustment of Eskom’s exposure over the same period.
 

R millions 2013 / 14 2014 / 15 2015 / 16 2016 / 17 2017 /18 2018 / 19 2019 / 20
Guarantees for Eskom 2016 Budget 125 125 149 944 168 539 190 064 204 932 215 373
2017 Budget 125 125 149 944 174 586 216 199 242 984 264 843 283 542
Guarantees for IPPs 2016 Budget 200 132 200 132 200 132 200 132
2017 Budget 68 345 96 159 113 971 125 766 119 085 112 796 104 114

 
This is important as the interim Eskom CEO has made a number of disparaging remarks on social media in recent months about the size of the contingent liabilities associated with the IPP programme and the wisdom of Treasury providing such guarantees. This has only been done by Eskom in an attempt to gain larger guarantees for its own ballooning New Build programme and to fund its nuclear energy ambitions.
We also commend his words of warning and recognition of the obstructive nature of Eskom’s actions towards the IPP industry and in particular around the implementation of Financial Close for Bid Window 4, the Small IPP programme and the announcement of preferred bidders for the Expedited Round. Eskom’s continued delays on signing Budget Quotes for the connection of IPPs not only undermines the REIPPP programme as one of South Africa’s key FDI attractors, but also further endangers the livelihoods of local IPPs and manufacturers.
SAPVIA looks forward to the political commitments made to the renewable energy industry by the President in SONA and the Minister of Finance in the Budget Speech being converted into executive actions in the next few weeks.

 

-ENDS-

 

SAPVIA can be contacted on:

Kim Thomas 021 200 5856
Mike Levington (Deputy Chair):082 770 1036
Davin Chown (Chairperson): 0834603898

SAPVIA represents 172 member organisations in the solar PV industry spanning technical service providers, installer, EPC companies, financiers, developers, utilities and IPP’s.

Click here to download a copy of full statement.