ISMO Bill reveals need for electricity sector restructure

Natasha Odendaal | 28 March | Engineering news

The Portfolio Committee on Energy on Thursday said it had adopted the long-awaited Independent System and Market Operator (ISMO) Bill, but the process reaching this point had revealed the need for the restructuring of the electricity sector.

The adoption of the amended Bill paved the way for the establishment of an ISMO as a State-owned entity.

This would enable the provision of an independent system operation to ensure the “safe, secure and efficient” operation of the integrated power system, the trading of electricity at wholesale level and other related activities.

Committee chairperson Sisa Njikelana said the committee aimed to ensure a favourable environment for the ISMO to operate and had tabled several recommendations to this end, adding that efforts on the restructuring of the entire electricity sector be “addressed as matter of urgency”.

He also suggested that a due diligence study be undertaken to determine the feasibility and implications of the transfer of transmission assets and a final report be submitted to the National Assembly by November.

Further, a cost benefit analysis of incorporating the transmission assets into ISMO, as well as establishing a transmission system operator, should be undertaken.

Edited by: Chanel de Bruyn
SOURCE: http://www.engineeringnews.co.za/article/ismo-bill-reveals-need-for-electricity-sector-restructure-2013-03-28

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One thought on “ISMO Bill reveals need for electricity sector restructure

  1. They do take their time!
    Now we have to wait for a “due diligence” before the issue of the transmission facilities becoming independent of Eskom will be discussed. So we will be well into 2014 before this is sorted out. I hope this isn’t used as an excuses to delay the ISMO implementation.

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