'It's a labour relations issue': Minister Ramokgopa on why he suspended NERSA's head of electricity regulation

The energy regulator's head of electricity regulation, Nhlanhla Gumede, was suspended this week as public hearings on Eskom's price hike application kicked off.

Nhlanhla Gumede was suspended from his position at the National Energy Regulator of South Africa (NERSA) pending the outcome of an independent inquiry.

On The Money Show, Stephen Grootes discussed the timing of the suspension with an energy expert, in view of the fact that Gumede had earlier this year questioned the methodology used by NERSA to determine electricity tariffs.

On Wednesday evening, Electricity and Energy Minister Kgosientsho Ramokgopa interrupted a meeting to discuss his decision on air.

Ramokgopa describes the suspension as 'a labour relations issue' and explains why he cannot give more detail.

"I think it will be unfair for me to ventilate what the issues are because Mr Gumede has reserved the right of reply. But, just from a process point of view, the board of NERSA wrote to me and suggested that there is prima facie evidence to suggest that he is bringing the organisation into disrepute."

"They substantiated what the issues were and I gave Mr Gumede the right of reply, and he came back to me with a long explanation about why he hasn't brought the organisation into disrepute and, in fact, his conduct was consistent with the mandate for the regulator."

Kgosientsho Ramokgopa, Minister of Electricity and Energy

He was essentially sitting with two opposing versions of what had transpired, the Minister says, and followed up internally with his legal team.

In the course of the independent investigation that will now be conducted, it's in NERSA's best interests to ask Gumede to step aside, he adds.

When Grootes hammers the point that the timing of the suspension infers that the reason for Gumede's suspension could have been to influence the outcome of the Eskom price application process, the Minister reiterates why he says he cannot give more information.

"I will not, on a public platform, just go after Mr Gumede - I think that's extremely unfair on him."

"Let's allow the process to transpire and then I'll share with you and the rest of the country what the outcome is."

"And, remember that the public hearings are a process of the board of Nersa, not a process of one individual."

Kgosientsho Ramokgopa, Minister of Electricity and Energy

Scroll up to listen to the interview, where Minister Ramokgopa also comments on the prepaid meter update deadline in Johannesburg