Both opportunity and risk come with competition in SA’s electricity sector
The revised pricing policy wants to find a balance between affordable electricity for low-income consumers and cost-reflective tariffs for all other consumers
Opening SA’s electricity market to greater competition will help solve many of the problems that are holding back economic growth in the country. But it is clear from draft regulations and legislation that were published by the department of mineral resources and energy last week that liberalising the electricity sector to allow private electricity producers to generate and sell electricity in competition with Eskom will also create new challenges.
The dilemma facing the department and the National Energy Regulator of SA (Nersa), which sets electricity tariffs in SA, centres on fairness, cost-reflectiveness and ultimately ensuring that those who can least afford it won’t end up subsidising electricity users who can afford to invest in self-generation...
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