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Electricity Reform Welcomed

Dear Editor

The signing of the Electricity Regulation Amendment Act into law by the President has profound implications for South Africa’s electricity sector. While there is much to be welcomed, such as the creation of the National Transmission Company as part of the unbundling of Eskom, the DA is concerned that this Act does not go far enough.

A truly independent system market operator would go a long way toward opening South Africa’s electricity market and creating a more competitive electricity sector. This is vital if we are to make electricity more widely available, more reliable, and more affordable.

A further concern is the role of NERSA, the National Energy Regulator, in determining prices and tariffs. We remain of the opinion that this is the antithesis of the purpose of the Act – to promote competitiveness in the electricity sector.

South Africa’s energy security is dependent on an electricity market that is open and accessible to the private sector. The DA will continue to push for greater independence of the National Transmission Company, and increased diversification of our energy mix.

Regards

Kevin Mileham MP
DA Spokesperson on Electricity and Energy

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