Page 7 - AfrElec Week 04 2021

AfrElec TARIFFS AfrElec

Other tariff changes include moving away Labson added that reading between the lines
from Incline Block Tariff (IBT) pricing, which of Eskom’s tariff proposal, Eskom’s allusion to
sees South Africans being charged more for elec- competing with solar power and other renewa-
tricity the more they use it. bles is indicative of a strategy to compete with
This change would be good news for heavy these alternative energy sources.
electricity users, who would see a reduction in He said Eskom is on a different competi-
their monthly bill, but lower users would see a tive footing compared to incoming own-gen-
relative increase instead. eration by consumers and businesses, adding
It is easy to claim that Eskom is trying to that Eskom’s lowering of prices for heavy users
undercut both solar panel users and to make it through the discontinuation of IBT would make
more difficult for new private generators to com- it more competitive.
pete with Eskom. However, Eskom told NERSA that it was
Energy expert Stephen Labson told SABC not anti-renewable and that its electricity tariffs
News that the idea behind IBT is to incentivise needed to be adjusted to better reflect the true
lower use of electricity, but Eskom has noted that fixed or network costs of connection to the grid,
customers do not really change usage patterns not to prevent the use of solar panels and other
based on the cost of electricity. renewable solutions.™

GAS-FIRED GENERATION

Total CEO, Mozambican president

discuss security for LNG project

MOZAMBIQUE FILIPE Nyusi, the president of Mozambique, to gain control of Cabo Delgado. The country’s
met with Patrick Pouyanné, the chairman armed forces, known as Forças Armadas de Def-
and CEO of France’s Total last week to discuss esa de Moçambique (FADM), are trying to repel
security conditions in the northern Cabo Del- this campaign but have had mixed results.
gado province. Total is building a gas liquefac- Meanwhile, the Islamist group has conducted
tion plant on Cabo Delgado’s Afungi Peninsula a number of attacks in the vicinity of the Mozam-
within the framework of the Mozambique LNG bique LNG construction site. Earlier this month,
project. for example, ASWJ troops attempted to infiltrate
According to Nyusi’s press service, the Quitunda, a nearby resettlement site for people
two men agreed that the Mozambique LNG displaced by the project, in advance of an attack.
construction site needed stronger security That incident led Total to evacuate some work-
arrangements. They also backed calls for the ers from the Afungi Peninsula, citing security
development and introduction of security strat- considerations.
egies that would not disrupt the implementation Total serves as the operator of the Mozam-
of the project, which encompasses the extrac- bique LNG consortium, and its wholly owned
tion of natural gas from Total’s offshore acreage, subsidiary Total E&P Mozambique Area 1 oper-
known as Area 1, and the processing of that gas ates Mozambique LNG with a 26.5% participat-
into LNG at an onshore complex. ing interest alongside ENH Rovuma Área 1, S.A.
As of press time, it was not clear whether (15%), Mitsui E&P Mozambique Area1 Limited
Nyusi and Pouyanné had mentioned any spe- (20%), ONGC Videsh Rovuma Limited (10%),
cific changes that might be made at Mozam- Beas Rovuma Energy Mozambique Limited
bique LNG. The presidential press service noted, (10%), BPRL Ventures Mozambique B.V. (10%)
though, that Defence Minister Jaime Neto, Inte- and PTTEP Mozambique Area 1 Limited (8.5%).
rior Minister Amade Miquidade and Mineral The partners hope to begin gas production at
Resources and Energy Minister Max Tonela Area 1, which lies offshore within the Rovuma
accompanied Nyusi to the meeting. basin, in 2024. They are then due to bring the first
Total and its partners in the Mozambique train of their LNG plant online around the same
LNG project have faced difficulties in recent time. This facility will eventually have two pro-
months, as an Islamist group known as Ahlu duction trains, each with a capacity of 6.44mn
Sunnah wa-Jamo (ASWJ) has stepped up efforts tpy.™

Week 04 29•January•2021 www. NEWSBASE .com P7