New ‘cheaper electricity’ bill proposes an alternative plan for Eskom

Parliament tabled the Independent Electricity Management Operator Bill for discussion on Thursday (24 October), outlining the DA’s proposed plans for Eskom.

First introduced to the National Assembly by the DA’s Natasha Mazzone, the party has internally labelled the proposed legislation as ‘the cheaper electricity bill’.

The bill seeks to break Eskom into two separate entities – a generation and transmission/distribution entity.

The generation entity would then be privatised in an effort to break Eskom’s monopoly on the production of energy, allowing Independent Power Producers (IPPs) to compete on an equal footing in the generation sector.

The legislation would also allow metropolitan municipalities to purchase electricity directly from the independent power producers.

In the bill’s explanatory memorandum, Mazzone said that the necessary provisions would be included to ensure that IEMO is incorporated as a private company that:

  • Is financially viable;
  • Would manage the systems entrusted to it in an efficient manner;
  • Would act as a trader of electricity in line with the policies of national government;
  • Would prepare appropriate and guiding input for the planning of electricity supply and its transmission;
  • Is responsible and achieves the establishment, practice and maintenance of an integrated power system;
  • Would ensure both efficient and effective dispatch within this integrated system.

“It cannot be denied that Eskom has effectively become a zombie enterprise that is both overinflated and riddled with corruption,” Mazzone said.

“It currently serves as both the main generator and the central purchaser and distributor of electricity.

“It marginalises independent power producers (IPPs) to maintain the stranglehold that it has over energy production at the expense of end-users, who have to endure hours of load-shedding as a result.

“It has become an archaic entity suffering from institutionalised maladministration so severe that it threatens every aspect of South African life,” she said.

You can read the full bill below:

IEMO Bill by BusinessTech on Scribd

Read: Swiss company latest to be caught up in Eskom corruption scandal

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New ‘cheaper electricity’ bill proposes an alternative plan for Eskom