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Democratic Alliance leader John Steenhuisen has called on the country to unite in the face of a "new threat" of possible US tariffs and even sanctions, following a rapid deterioration in relations with the superpower since President Donald Trump returned to the White House in late January.

However, he has also called for the Expropriation Act to be amended and for equity equivalent empowerment schemes to be opened to all sectors.

Steenhuisen was speaking in a Parliamentary debate on President Cyril Ramaphosa's State of the Nation Address (SoNA), in which Ramaphosa said South Africa would not be "bullied" amid threats by Trump that aid to the country could be cut because Trump alleged, without evidence, that South Africa was confiscating land from white farmers.

That threat materialised days later in the form of an executive order, stating that South Africa's new Expropriation Act enabled it "to seize ethnic minority Afrikaners' agricultural property without compensation", while also opening the way for the resettlement of Afrikaner "refugees" in the US.

"When a country faces a crisis, it needs to unite and navigate against the threat. That is what we must do now," Steenhuisen said, while calling for the Expropriation Act to be amended to "better protect property rights".

Ahead of the speech, the Democratic Alliance (DA) confirmed that it had filed papers in the High Court to challenge the Act, describing it as "unconstitutional, both substantively and procedurally".

Steenhuisen said the Government of National Unity, of which the DA is part and in which he serves as Agriculture Minister, should also approach its trading partners to "seek to lower tariff barriers across the board to compensate for any increase in tariffs by the US".

However, he also argued that equity alternatives to black economic empowerment (BEE) ownership requirements be allowed in every sector. This, an indirect reference to the objection being made by Pretoria-born Elon Musk, who heads Trump's newly formed Department of Government Efficiency, to a South African requirement in the telecoms sector that would require Starlink to sell 30% to BEE partners to secure a satellite licence.

While acknowledging that the wrongs of the past must be redressed, Steenhuisen argued that it should be done in a way that grew the economy and brought down unemployment.

"We must remember that South Africa cannot succeed unless everyone in it succeeds. And I mean everyone. No exceptions," Steenhuisen said, while emphasising the need to respect cultural and language rights and to guarantee the security of farmers and farmworkers.

Speaking on behalf of the official opposition, the uMkhonto weSizwe Party's Parliamentary leader, Dr John Hlophe, was less compromising, arguing that South Africa should respond to Trump's recent "bullying tactics", by deepening relations with the expanding BRICS Plus bloc of countries.

Economic Freedom Fighters leader Julius Malema, meanwhile, also agreed that the country should not be bullied, including by "power-hungry individuals intoxicated by the wealth of apartheid", an illusion to Musk with whom he recently sparred on X.

Malema also called on Ramaphosa to provide details when he replied to the debate on Thursday, on how South Africa would be responding to Trump.

In his SoNA address, Ramaphosa announced that he would be sending a "delegation of government and other leaders to various capitals on our continent and across the world" to outline the theme of South Africa's G20 Presidency and to explain "the many positions that we have taken".

The country's G20 theme of "solidarity, equality and sustainability" had already triggered US Secretary of State Marco Rubio to announced that he would not attend the G20 gathering in Johannesburg, as it conflicted with the Trump administration's rejection of diversity, equity and inclusion, as well as climate action.

Meanwhile, Rise Mzansi national leader Songezo Zibi urged government to act with urgency in t...

South Africa's Medium-Term Development Plan (MTDP) for the five-year period to 2029 will incorporate the 3% GDP growth target announced by President Cyril Ramaphosa in his State of the Nation Address (SoNA).

In a briefing after the SoNA, Minister in the Presidency for Planning, Monitoring and Evaluation Maropene Ramokgopa said the MTDP had been thoroughly canvassed among Government of National Unity (GNU) participants and was scheduled to be approved by Cabinet on February 26.

The MTDP would anchor departmental programmes of action from the start of the new fiscal year on April 1 and had been aligned to the GNU's apex priorities for the seventh administration of growth and job creation, poverty reduction and the building of a capable State.

The growth target, which would represent a significant improvement on the country's recent GDP performance and even the National Treasury's growth outlook, had been informed by a modelling of the growth upside from the economic reforms under way in energy and logistics.

Departments were currently aligning their annual performance plans with the SoNA and the MTDP and the Budget would progressively reflect the strategic priorities contained in the MTDP, starting with the February 19 Budget.

It had also been agreed that the Budgets of the seventh administration would not be subjected to any new fiscal rule on expenditure as had initially been considered. This, so as to ensure that the National Treasury was not constrained in its ability to respond to unforeseen developments or economic shocks.

It was also confirmed that the MTDP would provide a framework for the implementation of a National Health Insurance (NHI), over which GNU parties had expressed ongoing differences.

Amid conflicting messages over how the GNU could go about implementing the NHI, Ramokgopa said the Department of Planning, Monitoring and Evaluation had undertaken separate negotiations on the NHI with various individuals and departments in the run up to the drafting of the MTDP.

She also announced that Ministerial Advisory Committees on health technologies, health-care benefits, and an accreditation framework for health-service providers would be set up in preparation for the NHI.

These committees, she said, could include representatives from outside of government, including medical aid schemes.

Engineering News editor Terence Creamer discusses some of the key themes of President Cyril Ramaphosa's first State of the Nation Address since the establishment of the Government of National Unity; whether the SoNA reflected the fact that Cabinet now includes multiple political parties; how the President navigated some of the brewing geopolitical storms; and some of the key takeaways on the economy and for business.

In a State of the Nation Address (SoNA) overshadowed by diplomatic tensions between South Africa and the US over land, social inclusion and climate policies, President Cyril Ramaphosa said South Africa would "not be bullied" as it sought to chart a new path in a rapidly changing world.

Ramaphosa made no direct reference to President Donald Trump's threat to withdraw all aid because of South Africa's new Expropriation Act, which Trump said was resulting in South Africa "confiscating land, and treating certain classes of people very badly", but provided no evidence for the allegation.

Neither did he refer directly to Secretary of State Marco Rubio's announcement that he would not attend the G20 gathering in Johannesburg, because the conference's theme of "solidarity, equality and sustainability" conflicted with the Trump administration's rejection of diversity, equity and inclusion, as well as climate action.

However, Ramaphosa used the address, as well as the recent formation of a government of national unity, to underline South Africa's commitment to both cooperation and multilateralism.

"As South Africans, we know the power of cooperation, of what is possible when people of different backgrounds, races, cultures, languages, ethnic groups and religions come together behind a shared objective," he said.

Through partnership, he added, South Africa had overcome apartheid, "a crime against humanity that denied people their human rights, that deprived them of their land and livelihoods, that sought to strip them of their dignity".

Ramaphosa also used the platform to stress the country's commitment to racial and gender equality and inclusion, saying: "We stand for non-racialism and democracy, for tolerance and compassion. We stand for equal rights for women, for persons with disability and for members of the LGBTQI+ community. We stand for our shared humanity, not for the survival of the fittest."

Ramaphosa announced that he would be sending a delegation of government and other leaders to various African and global capitals to explain the country's policy positions and to highlight its objective for the G20 Presidency; a role it is meant to transfer to the US after the Johannesburg event.

"Our G20 Presidency is a valuable opportunity for South Africa to advance efforts towards greater global economic growth and sustainable development," he said, adding that the chosen theme underscored the need for international cooperation and partnership in a world that was characterised by "both interdependence and competition, of cooperation and conflict".

Speaking following the death of 14 South African soldiers in the eastern Democratic Republic of Congo in late January, international relations took a far more prominent role in the SoNA than is traditionally the case.

The bulk of the address, however, was directed towards domestic issues, including confirmation that the GNU had adopted a Medium Term Development Plan for the coming five years to advance its three strategic priorities of driving inclusive growth and job creation, reducing poverty and the high cost of living, and building a capable State.

Ramaphosa said economic growth remained the main priority and said that "to create virtuous cycle of investment, growth and jobs, we must lift economic growth to above three per cent".

"To achieve higher levels of economic growth we are undertaking massive investment in new infrastructure while upgrading and maintaining the infrastructure we have.

"We are developing innovative ways of funding infrastructure.

"We are engaging local and international financial institutions and investors to unlock R100-billion in infrastructure financing."

No new economic reforms were announced, with the President indicating that the priority remains the consolidation of the reforms under way in electricity, transport, water and visa reform.

MODERNISED INDUSTRIAL POLICY

However, the President announced that a modernised and comprehensive industrial policy would ...

The National Energy Regulator of South Africa's (Nersa's) recent decision to disallow Eskom from raising revenue through the tariff for carbon taxes may indicate that the National Treasury has opted to extend the electricity price neutrality approach used during the first phase of the tax by a further five years to 2030.

In its sixth multiyear price determination application (MYPD6), Eskom applied for carbon tax revenue of R5.5-billion in 2025/26, R21.3-billion in 2026/27 and 18.9-billion in 2026/27 in anticipation of the implementation of the second phase of the carbon tax on January 1, 2026.

When asked by Engineering News whether the disallowance meant that Eskom had received an exemption from the National Treasury, CFO Calib Cassim responded by saying: "[As with] the environmental levy, in terms of the [MYPD6] methodology, Eskom is allowed to recover that as a pass-through. We've applied and obviously we anticipate that there have been engagements between Nersa and the National Treasury, so that question should be referred to Nersa."

Nersa continued to allow Eskom to collect revenue at a rate of 3.5c/kWh for the environmental levy, with the determination including allocations of R6.5-billion, R6.3-billion and R5.3-billion for the three financial years covered by the MYPD6.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa also refused to comment, saying that tax and fiscal matters were in the domain of Finance Minister Enoch Godongwana, "so I will not encroach on that space".

However, EY tax partner Duane Newman believes the decision to disallow Eskom's carbon tax request suggests that Godongwana will use his February 19 Budget to announce an extension of the electricity price neutrality approach adopted during the first phase of the carbon tax into the second phase.

During the first phase, the carbon tax did not impact the price of electricity as electricity generators were allowed to offset the electricity generation levy and renewable energy premium payments against their carbon tax liability.

Ahead of the second phase, two options were canvassed, with the first being the retention and extension of the electricity generation levy to 2030.

The second option was for the electricity generation levy to be removed and for a carbon tax to be imposed on combustion emissions from 2026, offset against a portion of the renewable-energy premium.

The second option had been recommended, as it was seen as a clearer incentive for Eskom to lower its carbon emissions to reduce its carbon tax liability.

However, Newman believes the Nersa decision points to an extension.

In addition, he says the environmental levy could be refashioned as a carbon tax, which would also help offset the negative consequences for South African imports that will arise when carbon border adjustment mechanisms are introduced in Europe and elsewhere.

Besides an announcement regarding the approach to revenue neutrality for electricity generation, Newman anticipates that Godongwana will also make announcements regarding the approach to be taken with regards to allowances during the second phase, as well as whether the revenue collected will be allocated to incentives.

Steel producer ArcelorMittal South Africa (AMSA) has postponed the wind down of its longs business by a month to allow talks with government on possible ways to prevent the closure to progress, as well as to ensure ongoing supply to downstream customers that have no immediate alternatives.

The delay has been facilitated by a R380-million loan from the State-owned Industrial Development Corporation (IDC), which is a shareholder in the group, and which has also extended the deadline for the repayment of an older R950-million loan from June 2025 to September 2026.

The new loan was approved after AMSA indicated that it was unwilling to continue to absorb losses in the absence of a long-term solution to the structural problems afflicting its longs business.

On January 6, the JSE-listed company announced that it would wind down its longs business by the end of the same month after protracted negotiations with government failed to yield results that were considered satisfactory by AMSA.

Talks under the aegis of an inter-Ministerial task team had since intensified, alongside discussions with the IDC on a possible funding structure to cushion AMSA from the financial drain associated with ongoing losses from the longs unit.

In 2025, the longs business was responsible for R1.1-billion of the R1.8-billion earnings before interest, taxes and depreciation loss, with the balance of the losses attributed to the flats unit, which experienced operational problems relating to chilled conditions in some of its blast furnaces.

CEO Kobus Verster denied knowledge of a possible R1-billion "bailout" that had been reported in the media, but confirmed that discussions on possible funding structures were under way with the IDC.

"The longs business will only continue with financial support as the company does not have the appetite to bear any financial risk associated with the continued operations of that business," he said.

Verster continued to stress that a multi-layered solution was required to prevent the closure, which had placed 3 500 direct and indirect jobs at risk and which also threatened the socioeconomic fabric of the northern KwaZulu-Natal town of Newcastle.

The group has persistently highlighted high and rising electricity and rail tariffs as an impediment to continued operations at the Newcastle Works, which is heavily reliant on efficient logistics given its geographical distance from iron-ore sources and from markets.

When the mill was initially developed it was located close to a coking coal resource, and there had been an assumption that the logistics costs associated with iron-ore supply would be offset by the low-cost of that iron-ore being supplied, as well as the mill's proximity to export markets through the Port of Richards Bay.

Instead, AMSA now imports coking coal, its iron-ore costs have increased after it lost its Sishen rights, Transnet Freight Rail's costs and performance have deteriorated and Newcastle's export prospects never materialised, with South Africa experiencing intense import competition currently.

The group, which reported a R5.8-billion loss last year, told shareholders that steel imports into South Africa reached their highest recorded levels in 2025, accounting for 33.6% of the country's apparent steel consumption. This, at a time when domestic demand remained extremely weak.

In addition, the blast-furnace operation at Newcastle was facing what Verster described as unfair competition from several domestic electric-arc-furnace operations, which were securing discounted scrap material on the back of a preferential pricing system for scrap and an export tax.

He said that, while he did not expect government to halt the scrap benefit entirely, it was nevertheless within its power to act swiftly to reduce the size of the structural advantage of the mini mills over Newcastle.

"This is not a world of absolutes, so maybe it's not a 30% [scrap] discount, maybe it's a 10% discount," he said.

He also reported that the ...

Newly appointed Nordex Energy South Africa MD Robert Timmers says that South Africa is poised to be one of the multinational's largest markets outside of North America and Europe in 2025. This, despite recent public procurement disappointments arising from the country's well-documented grid constraints and delays in the introduction of new curtailment rules.

In an interview with Engineering News, Timmers indicated that the demand gap left by the last two Renewable Energy Independent Power Producer Procurement Programme (REIPPPPP) bidding rounds was currently being partially closed for Nordex by two large private projects in the Eastern Cape, with a combined capacity of 631 MW.

Once completed over the coming 12 months, these projects will increase the original equipment manufacturer's domestic operational fleet to about 1.7 GW and consolidate the group's market share at above 30%.

South Africa would still represent but a modest part of the 50 GW of capacity installed globally by Nordex over its 40 years of existence, a milestone that the Hamburg, Germany, headquartered company is also marking this year.

Nevertheless, Timmers says South Africa has long been identified as an important growth market. A prospect that has also motivated his return to the country, following an eight-year leadership spell in Australia, where he oversaw Nordex's delivery of increasingly large and complex projects, including the nearly 1 GW MacIntyre Wind Farm, regarded as the largest in the southern hemisphere.

Prior to his Australia posting, Timmers joined Nordex Energy South Africa from Deloitte, having earned a Postgraduate Diploma in Accounting and Bachelor of Business Science in Accounting and Finance from the University of Cape Town, and worked on the Gouda wind project, in the Western Cape.

While South Africa's immediate wind market outlook is overshadowed by grid-access uncertainty, Timmers is cautiously optimistic that initiatives under way to help unlock the grid alongside technology innovations will restore wind's central role in South Africa's unfolding energy transition.

There is still a possibility, he notes, that some wind projects submitted during Bid Window Seven of the REIPPPP could advance once value-for-money discussions are concluded, while several private projects could also enter construction in the not-too-distant future.

LOW-WIND SOLUTIONS

There are also technology solutions that will improve the competitiveness of projects in grid-ready regions such as Mpumalanga, where the wind resource is less potent than is the case in the Eastern, Northern and Western Cape provinces, where most wind projects have hitherto been developed.

Nordex itself has solutions in its portfolio, and which it is deploying in countries such as Germany, which have larger, more efficient rotors, higher towers and higher yields in low-wind areas, including the N175 turbine design that has a 6.8 MW capacity, towers with up to a 179 m hub height and a 175 m rotor diameter.

These technologies have been developed partly because of the fact that access to the grid is a constraint in the most optimum wind locations that is not limited to South Africa and wind projects are, thus, increasingly having to be built using technologies that are able to ensure that projects in lower wind-resource areas have an acceptable internal rate of return.

That said, Timmers does has doubts whether the domestic market will ramp-up to match the recently remodelled draft Integrated Resource Plan, which anticipates more than 7.2 GW of wind being installed before 2030 due to these grid constraints.

Instead, the company is assuming that the yearly market can grow to a steady 1 GW, with the recent high tariffs bid under REIPPPP likely to moderate to competitive levels once short and medium-term solutions are found to the grid constraint, and as more efficient wind turbines are introduced.

Wind's production profile, particularly during South Africa's evening peak, will also continue to...

South Africa could increase its GDP growth by 1% in the short term and up to 3% in the medium term by addressing persistent energy and freight logistics constraints, the World Bank's latest 'South Africa Economic Update' states. Such projected increases in economic activity, the report adds, could create about 200 000 jobs in the short term and 500 000 jobs in the medium term.

The bank estimates that constraints in both sectors have cost the economy three to five percentage points of GDP growth, and have disproportionately affected small businesses and low-income households.

"The authorities have responded to this crisis by adopting a series of reforms, especially in power generation, that have already produced positive results with the emergence of privately sponsored renewable energy projects.

"At this stage, it is important to continue this effort by extending these reforms to transmission and distribution in the energy, railway, and port sectors," the fifteenth edition of the update argues.

The World Bank is currently forecasting growth of 1.8% for South Africa in 2025, on the back of weak estimated growth of 0.8% in 2024. It is anticipating growth of only 1.9% and 2% in 2026 and 2027 respectively.

The outlook is slightly more bullish than one published recently by the International Monetary Fund, which forecast 1.5% growth for 2025, rising to 1.8% by 2027. It is also marginally higher than the National Treasury's most recent outlook for growth of 1.7% this year and average growth of 1.8% over the three-year horizon.

"The short-and medium-term outlook has improved, and the GDP growth rate is projected to converge toward 2%," the report states, highlighting the successful 2024 political transition, the decline in loadshedding since March 2024 and the sharp reduction in inflation as supportive factors.

The report also points to downside risks, including South Africa's vulnerability to geopolitical developments and any trade war. However, it argues that domestic factors remain the biggest risk to growth, including what it describes as a fragile coalition formed by 11 political parties after the May 2024 elections.

"Similarly, if the consensus for economic reforms has become stronger, the opening of infrastructure sectors could still be challenged by vested interests, including from existing State-owned enterprises that have been losing some of their monopolistic powers during the transition."

The bank also highlights the inadequacy of even the 2% growth outlook; a pace that will increase the average income per capita by a paltry 1.1% a year.

"This means it could take almost 65 years for the country to become a high-income economy," the report notes, while indicating that growth of between 3% and 5% is needed to ensure far higher levels of job creation and economic inclusion.

It proposes that South African policymakers should consider three mutually reinforcing actions to achieve faster and more inclusive growth, including addressing the infrastructure constraints in energy and transport.

The other two proposals relate to enhancing efficiency in public spending and strengthening human capital development, the latter being a major theme of the latest update which has a focus on the country's basic education sector.

The bank concludes that despite improving access to quality basic education for two decades, South Africa continues to face a multidimensional "learning crisis".

The report proposes a range of interventions to improve the foundations of learning through introducing structured daily lesson plans, teacher support, benchmarked reading assessments and improving access to early childhood development services.

The bank also proposes that government leverage the private sector to help expand the quality and coverage of its education system, while targeting meaningful efficiency gains in public spending on education.

South Africa's President Cyril Ramaphosa has issued a swift response to US President Donald Trump's threat that aid from that country could be withdrawn, owing to his view that South Africa's recently enacted Expropriation Act is leading to the confiscation of land.

Following Trump's comments, which were made initially on his Truth Social account and later reinforced in a brief television interview, the Presidency said the government had not confiscated any land.

It also underlined South Africa's status as a "constitutional democracy that is deeply rooted in the rule of law, justice and equality".

In the Truth Social post, Trump said: "South Africa is confiscating land, and treating certain classes of people VERY BADLY. It is a bad situation that the Radical Left Media doesn't want to so much as mention. A massive Human Rights VIOLATION, at a minimum, is happening for all to see. The United States won't stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!"

Then, in an impromptu interview regarding the possibility of cutting aid to other African countries, Trump indicated that his attention was solely on South Africa.

"No, it's only South Africa. Terrible things are happening in South Africa. The leadership is doing some terrible things, horrible things. So, that's under investigation right now. We will make a determination [once] we find out what South Africa is doing.

He went on to say: "They're taking away land, they're confiscating land and actually they're doing things that are perhaps far worse than that."

Trump's warnings came amid a flurry of recent executive actions affecting foreign relations, including the announced imposition of 25% tariffs on Canadian and Mexican imports and an additional 10% on Chinese imports.

Ramaphosa stressed that the country's recently adopted Expropriation Act was not a confiscation instrument, but a constitutionally mandated legal process that ensured public access to land "in an equitable and just manner as guided by the Constitution".

"South Africa, like the United States of America and other countries, has always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners."

Ramaphosa said it looked forward "to engaging with the Trump administration over its land reform policy and issues of bilateral interest", and expressed optimism that these meetings would result in a better and common understanding.

It also stressed that the US remained a key strategic political and trade partner for South Africa.

"With the exception of PEPFAR Aid, which constitutes 17% of South Africa's HIV/Aids programme, there is no other significant funding that is provided by the United States in South Africa," it added.

After Ramaphosa posted his response on X, Elon Musk, who grew up in South Africa and who has voiced his opposition to both the Expropriation Act and South Africa's black economic empowerment policies, posted the following on platform that he also owns: "Why do you have openly racist ownership laws?"

Musk is also heading Trump's newly created Department of Government Efficiency, and has called for the closure of the US Agency for International Development , which is the implementing agency for the President's Emergency Plan for AIDS Relief, or PEPFAR.

Later this year, South Africa will host the G20 meeting in Johannesburg and will be handing over the presidency to the US. There is currently still an expectation that President Trump will attend the meeting.

Eskom has confirmed that it is forecasting to make a full-year profit of more that R10-billion for 2024/25, having reported a R17-billion profit for the interim period, up from the R1.6-billion recorded for the same period in 2023/24.

The group reported an after-tax loss of R55-billion in its full 2023/24 financial year, a performance that was negatively affected by the derecognition of a R36.6-billion deferred tax asset associated with the separation of the National Transmission Company South Africa (NTCSA).

Its loss before tax last year stood at R25.5-billion, which represented an improvement on the R34.6-billion reported in 2023/24.

Eskom's going-concern status is currently being sustained only because of the R252-billion debt relief being extended by the National Treasury, of which R64-billion was released in the 2024/25 financial year.

CEO Dan Marokane told members of the Portfolio Committee on Electricity and Energy that the interim profit reflected the seasonal character of the business, which benefitted in the first half of its financial year from April to September from both higher demand and higher winter profits.

Nevertheless, he still anticipated a full-year profit of R10-billion, on the back of a far better operational performance, which he said was now filtering through to its financial performance.

For the six months to September 30, plant availability rose to 62.97% from only 55.27% in the comparable period of the prior year.

In addition no loadshedding was implemented for the first 183 days of the 2024/25 financial year, resulting in an R11.9-billion fall in diesel cost period-on-period.

That loadshedding reprieve had since been extended to 301 days, but rotational cuts were reintroduced at Stage 3 on January 31, because diesel and pumped-storage reserves had been depleted, owing to extended use after six coal units broke down across the Matimba and Lethabo power stations.

Asked how the recently approved above-inflation tariff hike of 12.74% could be justified in the context of a R10-billion profit forecast, CFO Calib Cassim pointed to Eskom's persistently supressed financial ratios.

These, he said, were making it impossible for it to meet its maintenance and expansion plans while also honouring repayments on debt, that remained above R412-billion at the end March last year.

He said a R10-billion profit would represent a 3% margin, which was well below the returns being achieved by independent power producers.

Eskom, which had applied for a 36.15% tariff hike, also indicated that the 12.74% was not in line with what was needed to restore the group's financial sustainability, but stressed there were also three other key components.

These included self-help measures such as noncore disposals, implementing cost savings and addressing the municipal arrears debt problem.

Cassim warned that there was a growing risk that the rising municipal arrears debt, which stood at over R90-billion, would erode the benefits of the debt-relief package.

Marokane said Eskom would be integrating the 12.74% into its models to assess the impact and promised to provide feedback on the implication within weeks.

He gave no indication that Eskom intended to contest the outcome legally, saying that it would need to assess how the business could operate within the envelope provided, with priority to be given to asset maintenance and integrity.

Eskom also refused to be drawn on whether the fact that it received no allowable revenue for the carbon tax implied that it had secured an exemption, directing enquiries in that regard to Nersa and the National Treasury.