The residents of Sekhukhune District Municipality in Limpopo have raised their concerns about the possible rise in electricity cost under the changes proposed in the Electricity Regulation Amendment Bill.

They told the Portfolio Committee on Mineral Resources and Energy which conducted public hearings on the Bill at the ELSCA Lutheran Church in Motetema, outside Groblersdal today, that their biggest fear was that electricity would become costly when private companies start competing with Eskom in electricity generation.

They said their main concern was cost, and whether the proposed reforms will result in cheaper electricity for the consumers, or it will become even more expensive.

Generally, the Bill is receiving support from the different sectors of society who believe that the planned opening of the market for competitive electricity trading would resolve the current challenge of power shortages facing the country.

There was also a submission that the planned new companies must empower young people
and also prioritise qualified South Africans for employment. The committee also heard about warnings against any possible privatisation of Eskom, residents also said such a move will disadvantage the country and make more people poor.

Those who opposed the Bill said it is vague and needed to be redrafted to clearly define the roles of the different role-players including the envisaged new state companies and the private sector, as well as how will the public benefit in the planned changes.

Committee Chairperson Mr Sahlulele Luzipo said the committee does not hold a view on the draft legislation and will only hold deliberations once all nine provinces have been consulted.

The Electricity Regulation Amendment Bill aims to effect changes to the Electricity Regulation Act in order to provide for additional electricity generation capacity and infrastructure, as well as the establishment of the Transmission System Operator SOC Ltd.

The draft legislation also seeks an open market platform that will allow for com
petitive 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 last public hearings of the Limpopo leg will be held tomorrow at Bela-Bela Multipurpose Centre in the Waterberg District Municipality.

Source: Parliament of South Africa