POLITICS

Municipalities should be able to bring IPPs online - Kevin Mileham

DA MP says Eskom monopoly has held this country hostage for too long

#KeeptheLightsOn: DA in opposition to table motions to compel municipalities to bring on Independent Power Producers

28 March 2019

Following the stage 4 rolling power blackouts this past week, which have crippled businesses and industries, hampered transport and affected over 8 million people at any given time, the Democratic Alliance (DA) will embark on a nation-wide motion in every council in which we are in opposition, for those municipalities to acquire the necessary permission from the Minister of Energy to bring online Independent Power Producers (IPP).

For too long, Eskom has held this country hostage with its monopolistic grip on power generation, distribution and transmission. It is an archaic system which should have been broken up many years ago. We have developed a parliamentary bill, the cheaper electricity bill, to break up this monopoly and free up the generation component of Eskom which is currently with parliamentary legal services.

The DA-run City of Cape Town has active litigation against the Minister of Energy and the National Energy Regulator of South Africa (Nersa) to allow the City to source power directly from IPPs and challenge the existing status quo where Eskom is the single buyer.

The City is seeking a Section 34 determination, in accordance with the New Generation Capacity Regulations in the Electricity Generation Act, to allow them to procure renewable energy from IPPs.

DA mayors will also write to the Energy Minister, Jeff Radebe, to institute this section 34 determination on electricity generation for municipalities.

Following these letters, this motion in every council will provide much-needed momentum, direction and impetus to the growing surge for IPPs to feed directly into metro and municipality grids.

This will reduce the sole reliance on Eskom for our energy needs while, at the same time, provide for a more resilient and sustainable energy grid through the use of cleaner energy, such as renewable energy.

The DA will continue to fight for a competitive and diverse energy landscape that will provide stable and affordable electricity prices to all. A stable electricity grid will stabilise our economy and prevent any further job shedding due to Eskom’s rolling power blackouts.

Issued by Kevin Mileham, DA Shadow Minister of Energy, 28 March 2019