Housing Ministry’s commitment on electricity supply to new residential developments requiring less than 100KW and low-income housing developments

Minister of Housing Lindiwe Sisulu wants to reassure South Africans that electricity supply shortages will NOT affect new residential property developments requiring less than 100KW and low-income housing projects.

The Banking Association of South Africa last month raised concerns that perceptions created after Eskom’s announcement of a so-called moratorium could negatively affect all future housing developments.  At the time, Minister Sisulu undertook to raise and resolve this matter with the relevant Cabinet colleagues.

After discussions between the housing minister, the Minister of Minerals and Energy Affairs Buyelwa Sonjica and Minister of Public Enterprises Alec Erwin, Minister Sisulu wants to again confirm that government is committed to ensure new property developments requiring supplies of less than 100KW or 100KVA and affordable housing projects receive the necessary electricity supplies. “The power supply challenges can not be allowed to affect housing delivery to South Africa’s poor and government’s commitment to improve the living conditions of its citizens.”

Minister Sisulu says any lingering doubts on this matter must now be laid to rest, particularly as Eskom itself already on 5 March 2008 said “(it) is not stopping any developments. All those developments that have already applied and have quotations will be honoured.”

Government again confirms the moratorium has always excluded:

- Low-cost housing developments

- Projects which already obtained the required electricity certificates

- Any property developments requiring less than 100KVA or 100KW

As part of Government’s efforts to deal with the power situation, the Department of Housing has joined a government task team to ensure new building regulations are in enacted to ensure energy-efficient housing.  Such criteria will also be incorporated into the standard regulations of the National Home Builders’ Registration Council (NHBRC). In addition, the housing department will play its role to ensure individual households are part of the national energy saving drive.

Government will release Eskom’s new electricity supply  procedure next month.

For further information, please call:

Marianne Merten, Housing spokesperson, 074 103 8458 or 021 – 466 7609

Bheki Khumalo, Minerals & Energy Affairs spokesperson, 082 773 2388