Move to improve electricity supply

Posted On Friday, 04 March 2005 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

To improve efficiency and capacity, Cabinet last year agreed to restructure the local electricity industry, tasking EDI Holdings to spearhead the project.

EskomThe restructuring of the electricity and distribution industry must not have a negative impact on the supply of free electricity to indigent families.

This was said by the Committee on Provincial and Local Government to the company that is managing the restructuring process, EDI Holdings, at a presentation here yesterday.

To improve efficiency and capacity, Cabinet last year agreed to restructure the local electricity industry, tasking EDI Holdings to spearhead the project.

The restructuring, which will see the consolidation of the South African Electricity Distribution Industry into six financially viable Regional Electricity Distributors (REDs), will see Eskom and municipalities jointly owning and running the REDs.

Presenting the restructuring report, EDI Holding CEO Phindile Nzimande said despite the fact that some of the municipalities had not yet approved the process, she was positive all local governments would finally come on board.

"At the moment participation on the restructuring process is voluntary as there is currently no legislation to compel municipalities to be part of the process. 

"So far 17 municipalities have agreed to be incorporated into the new system and we are in the process of bringing the remaining 267 on board," she said.

On among other benefits, the restructuring would relieve municipalities of burdens such as billing, debt collection, and maintenance, create jobs in rural areas and improve efficiency.

Portfolio committee chairperson Ruth Bhengu said the issue of the supply of electricity to the residents was so crucial that any proposed changes needed to be scrutinised thoroughly in order to ensure that people were not inconvenienced in any way.

"Currently the government has made some strides in ensuring that indigent people get free electricity and also that those in rural areas get access to electricity. 

"The Committee will ensure that the new system will bring added benefits and not take away the many benefits currently enjoyed by our citizens," she said. 

 

Last modified on Monday, 04 November 2013 11:37

Most Popular

Redefine making headway following its announcement to acquire balance of EPP shares

Nov 29, 2021
Andrew Konig (1)
Redefine Properties today announced that it proposes to make a share-for-share offer to…

New president elected by Consulting Engineers South Africa (CESA)

Nov 29, 2021
Olu_Soluade
Consulting Engineers South Africa’s (CESA) 68th Annual General Meeting held on Wednesday,…

Silver lining from unrest and Covid-19 for businesses that can reimagine sustainable future growth

Dec 01, 2021
Malusi_Mthuli
The unrest and looting that took place in many parts of KwaZulu-Natal and Gauteng in July…

Please publish modules in offcanvas position.