Private sector must play role in energy chain

Business Report 1 August 2012.

THE PRIVATE sector should play a much more meaningful role throughout the electricity supply chain, MPs were told yesterday.

This included allowing for a supply “wheel” directly from independent power producers to industries via the national grid, the Free Market Foundation’s Temba Nolutshungu said.

Nolutshungu argued that the potentially erratic supply of electricity and also the possibility of blackouts caused by the gradual degeneration of the electricity distribution network – because of poor management by the municipalities – was having a knock on negative impact on South Africa’s economy.

He pointed out the irony of urging business to reduce their use of electricity, which was having a ripple negative effect on gross domestic product and a loss of direct investment…