Parliament, Thursday, 26 October 2023 – The need for the privatisation of energy utility company Eskom proved to be a major point of contention for residents of the Greater Pixley ka Seme District Municipality in the Northern Cape during the public consultation process on the Electricity Regulation Amendment Bill (B23-2023). The Portfolio Committee on Mineral Resources and Energy concluded the second of four public hearings in the Northern Cape at the De Aar Town Hall.
The Bill received majority support largely because of the view that energy sector reform is the necessary remedy to South Africa’s current electricity challenges. But there were differences of opinion on what form those reforms must take.
Those in support of the Bill argued strongly that privatisation of Eskom was undesirable as it will negatively affect the poor, especially because private companies are interested in profit-making, which might make electricity unaffordable. Other participants welcomed the Bill on the basis that it has the potential to open the market to other electricity providers who will add to the energy supply generated by Eskom.
Other participants in the public hearings argued that Eskom’s inefficiencies, along with those of other state-owned enterprises, supported the argument for privatisation. Dissenters argued that the challenges currently facing Eskom impact negatively on the poor, especially in areas like De Aar.
Similar to hearings in Upington, participants embraced the insertion of provisions on offences and penalties for contraventions of the Act. Participants were unanimous in acknowledging that cable theft must be classified as a criminal offence, as it has direct cost implications for households, and municipal and Eskom infrastructure. Participants, therefore, called for harsher sentence beyond the five years proposed in the Bill.
The committee will today hold the third round of public hearings at the Wrenchville hall in Kuruman from 10 am. The committee invites interested individuals and organisations to come and share their views with the committee. “Public participation remains a critical pillar of a democratic South Africa and this is an opportunity for the public to influence legislation that impacts their daily lives,” said Mr Sahlulele Luzipo, the Chairperson of the Committee.
The Electricity Regulation Amendment Bill aims to effect amendments to the Electricity Regulation Act of 2006, to improve the administration of the Act; to provide for additional electricity, new generation capacity and electricity infrastructure; and to provide for the establishment, duties, powers and functions of the Transmission System Operator SOC Ltd.
It will also provide for an open market platform that will allow for competitive electricity trading; and to assign the duties, powers and functions of the Transmission System Operator SOC Ltd to the National Transmission Company South Africa SOC Ltd.
The committee welcomed the comments made in De Aar and assured participants that their views are important and will serve to strengthen the Bill.
The details of the Northern Cape Hearings as follows:
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DISTRICT |
LOCAL |
VENUE |
DATE |
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John Taolo Galestwewe |
Gasegonyana |
26 October 2023 at 10:00 |
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Frances Baard |
Sol Plaatjie |
Kimberley City Hall |
27 October 2023 at 10:00 |
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERALS AND ENERGY MR SAHLULELE LUZIPO
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