Govt to seek ways of reducing electricity cost: Gordhan

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Public Enterprises Minister Pravin Gordhan says government will seek various ways of reducing the cost of electricity.

He was speaking during a question and answer session in the National Assembly by ministers in the Economic Cluster.

Despite the fact that electricity tariffs are set by the National Energy Regulator of South Africa (Nersa), Democratic Alliance (DA) MP Erik Marais questioned Gordhan how his department would attempt to lower the cost of electricity.

“Firstly, operational efficiency, efficient procurement, removes rent seeking and corruption around procurement, which can significantly reduce costs. Fourthly, it is [the] issue of coal procurement. If coal, renewable energy is procured on right basis, additional to competition and restructuring won’t happen tomorrow, [it] will take time,” explains Gordhan.

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