FRIDAY, 11.30AM:
A WORKSHOP held on Friday to plot the way forward for restructuring SA’s R20-billion electricity distribution industry reached broad agreement on consolidation of the industry into regional distributors top boost electricity delivery to 2,5-million households by 2000.
Mineral and Energy Affairs Minister Penuell Maduna told the meeting, called to set up a stakeholders’ advisory committee to advise on the composition of a full-time transformation team, that the electricity distribution industry is in crisis, with the most pressing challenges including the disparity in the cost of supplying electricity, electrification targets and differences in service and quality standards.
Maduna said the is gross inefficiency in service delivery, with more than 2 500 different tariffs and an inability among some municipalities to pay their debts to Eskom.
Cabinet recently approved recommendations for restructuring the sector, including consolidating the industry into the maximum number of viable, independent regional distributors, introducing cost-effective tariffs, an electrification levy, a capped tax for part funding of municipal services, and a nationally administrered electrification fund. Cabinet accepted the proposals on condition that they be discussed with stakeholders in the industry.