Free Market Foundation calls for electricity reform

Engineering News 13 November 2012.

There is a “dire need” for  electricity sector reform in South Africa, where the current power deficit stood at over 5 000 MW, Free Market Foundation director Eustace Davie said on Tuesday.

“Right now, we are paying firms not to use electricity, while preventing new development, curtailing industrial development and stalling property development. This all leads to loss of gross domestic product and loss of foreign direct investment.

“This is a serious situation, and many businesses will have to close their doors on account of not being able to pay for the electricity increases. This calls for potential alternative sources of energy,” he said.

Davie pointed out that the first step would be to open up the transmission grid for wheeling from independent power producers (IPPs) to customers.

The second step would be to make the transmission grid independently owned and managed. “We must immediately resolve that all additional electricity generation should be financed, built, owned and operated by private firms…

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