Videocast – DA Press conference on Eskom Restructuring

The Democratic Alliance on Monday released a discussion document on Electricity Sector Reform – expanding on one of the longer-term proposals in our previous document proposing solutions to the energy crisis.

Below is a video excerpt of Hendrik Schmidt’s press conference, in which he sums up the key points of the document:

posted with vodpod

Briefly:

1. The natural monopoly of transmission of electricity needs to be unbundled from the potentially competitive activity of generation – Eskom’s transmission division must be transformed into a separate state-owned company that will ensure that all power producers receive equal access to the grid;
2. Eskom’s status as the country’s sole buyer of electricity needs to be revoked to encourage independent power producers to enter the sector; and
3. Eskom’s market share needs to be reduced over time to a minimum of 35%

A prohibitive regulatory environment continues to keep IPPs at bay, and will continue to do so unless steps are taken to dismantle Eskom’s monopoly and ensure private sector participation.

Please visit the DA’s website, if you’d like to read the full statement and/or download the full document.