EDITORIAL: How to crash a JET

Yesterday President Cyril Ramaphosa called an urgent cabinet meeting to discuss whether to implement the electricity minister’s suggestion to extend the decommissioning dates of coal-fired power stations.      

Amid an energy crisis that is also a political crisis for the ANC, it is understandable that the governing party is seeking quick solutions. But this is still a terrible idea. Extending the life of coal power stations conflicts with the 2019 Integrated Resource Plan and risks the $8.5bn just energy transition (JET) finance deal, unless the government can show how the idea will align with SA’s long-term decarbonisation commitments.

Given that finance for coal power cannot be raised on the open market, the idea also exposes the fiscus to yet more costs. Furthermore, entrenching carbon-heavy energy for longer exposes businesses reliant on Eskom to tax risks associated with the Carbon Border Adjustment Mechanism and will render SA exporters uncompetitive and redundant, killing businesses, jobs and tax revenue.

Cheap money is ready to pour into SA to fund our energy transition and reduce the cost of energy. The only people this relentless dithering helps is those with interests in the corrupt coal value chain. This should never have got anywhere near the cabinet, because turkeys shouldn’t waste time discussing the merits of Christmas. Yet here we are, jingling bells and all.