Energy News – Regional Electricity Distributors should be scrapped

17 June 2008

DA minerals and energy spokesperson Hendrik Schmidt issued a statement last Tuesday reiterating the DA’s call that Regional Electricity Distributers (REDs) should be scrapped. You might recall a previous video post about why RED 1 failed.

Similar problems again surfaced during a electricity distribution maintenance summit last week. South African Local Government Association revealed an estimated R25 billion maintenance backlog, largely due to the uncertainty around the establishment of the REDs.

Said Schmidt, “Billions in maintenance backlogs is yet another reason why REDs must be done away with. It is evident that urgent maintenance in distribution networks is needed before the whole electricity sector collapses.”

He added that the Democratic Alliance had advocated the introduction of a well-defined Distribution Charter, which would spell out the full functions and standards expected of electricity service providers.

“In addition to this, greater authority must be placed with the electricity regulator to both monitor and enforce compliance with the Distribution Charter,” Schmidt concluded.


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