Business sector warns Eskom’s court action threatens South Africa’s energy security
Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have called on power utility Eskom to drop its legal challenges
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Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have called on power utility Eskom to drop its legal challenges against electricity trading licences granted by the National Energy Regulator of South Africa (NERSA).
The power utility launched the legal challenge last month after NERSA granted five trading licences to independent power producers and other market players.
The utility argues that these licences violate NERSA’s own rules by allowing multiple licensees to operate in the same supply areas without a proper regulatory framework in place.
However, the two business groups argue that the power utility’s move “undermines the country's national goal of achieving energy security” by delaying the entry of new energy players into the market and sending the wrong signal to potential investors.
In a joint statement issued to the media Friday, BLSA and BUSA accused Eskom of trying to protect its historical monopoly rather than supporting the government’s energy reform agenda
"By legally challenging NERSA’s awarding of trading licenses, Eskom is actively working to protect its historical monopoly at the direct expense of a stable national power supply".
BLSA CEO Busi Mavuso said Eskom’s legal challenges are not only delaying urgently needed reform but also damaging investor confidence in the country’s energy market.
“Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution,” Mavuso said
“South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid, now. For Eskom to spend public money on litigation designed to frustrate the very reforms the Government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.”
The groups also highlighted that the Electricity Regulation Act has already attracted over R30 billion in renewable energy investments and created around 10,000 jobs. They added that a competitive market could bring in R132 billion more investment and thousands of additional jobs by 2030.
“Our goal as a nation must be a reliable and affordable supply of electricity for every South African. This requires collaboration, not litigation,” said Khulekani Mathe, CEO of BUSA said.
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