LETTER: Eskom should outsource
Restricting it to national electricity distribution would have major benefits
Eskom should own and manage only the SA national electricity distribution network and outsource to the private sector the various supply components, be they coal or nuclear powered, hydroelectric or one of the many various renewable energy sources.
Eskom, in managing such a national electricity distribution network, would have to ensure that individual, privately owned supply components conform to network interface standards and to desired standards on input, pricing, uptime and availability, otherwise the network would be closed to them.
Such a national electricity supply and distribution model would have major benefits:
- Overall uptime would be maximised because the effect of any individual supply component downtime would be offset in the network.
- Overall pricing levels could be minimised for two possible reasons: individual power component suppliers would have to conform to certain maximum input supply pricing levels; and they would have to compete for a slot in the network.
Such a power supply and distribution strategy could have major economic benefits because two key goals could be achieved. First, the cost of electricity would be reduced. Second, economic growth, employment and innovation would be fostered by the opportunity of being a “power component supplier”.
Dr Barrie Michael Cole