MEDIA STATEMENT: COMMITTEE ON MINERAL RESOURCES CONCLUDES LIMPOPO LEG OF PUBLIC HEARINGS ON ELECTRICITY REGULATION AMENDMENT BILL

The Portfolio Committee on Mineral Resources and Energy yesterday concluded public hearings on the Electricity Regulation Amendment Bill in Limpopo.

The committee visited Vhembe, Mopani, Sekhukhune and Waterberg districts in the province to solicit public inputs on the draft legislation that seek to introduce comprehensive reforms in the electricity sector including the unbundling of Eskom and opening the market for competitive electricity trading.

The 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 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.

“Now that we are done here in Limpopo, we still have eight other provinces to conduct public hearings on the Bill. We hope to be done with the public consultations by the end of November this year and we thank everyone for their input especially the fact that all inputs were relevant and spoke to exactly what the Bill is about,”said committee Chairperson Mr Sahlulele Luzipo.

The Bill received mixed reaction, with those who supported it telling the committee that it would be beneficial for South Africa to have more electricity companies and it will also help address the current shortage of electricity. Others said they hoped the proposed amendments would bring to an end the challenges of load shedding and also remove pressure from Eskom.

There were concerns about the possible rise in electricity cost under the changes proposed in the Bill. Residents told the committee that their biggest fear was that electricity would become costly when private companies start competing with Eskom in electricity generation.

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. The residents told the committee that such a move will disadvantage the country and make more people poor.

The committee will conduct public hearings on the Bill in Mpumalanga next week.

ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES AND ENERGY, MR SAHLULELE LUZIPO.

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Source: Parliament of South Africa