The 100-year electricity monopoly held by Eskom will now formally expire thanks to a draft bill approved by the National Council of Provinces (NCOP). The market for competitive electricity trading will be opened up by formalizing procedures through the Electricity Regulation Amendment Bill.
Once signed and formalized, the bill will ensure greater participation by the private sector in electricity generation.
However, the power utility will maintain its exclusive control over the transmission business.
Samson Mamphweli, an energy analyst, predicts that there won’t be significant tariff hikes after the bill is implemented.This, he continues, will be because of the intense competition that is expected to permeate the industry.
Independent Power Producers (IPPs) will generate electricity at a significantly lower cost than what Eskom is prepared to offer the transmission operator. According to him, the nation needs that kind of competition to have cheaper electricity costs in the future.
