News of Eskom’s letter to Energy Minister Tina Joemat-Pettersson –seeking clarity on the approach the utility should take to contracting in future with independent power producers (IPPs) – sent shock waves through the private power community, which is only just starting to find its feet in a sector still dominated by the State-owned monopoly. The letter, the contents of which were leaked to the Business Day, was sent last week by Eskom chairperson Dr Ben Ngubane, who indicated that the utility was unwilling to sign further power purchase agreements (PPAs) beyond the preferred projects selected under bid widow 4.5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
