Salga condemns new Electricity Regulation Amendment Bill as unconstitutional

John Perlman interviews Carol Paton, Editor-at-Large at Business24.

Listen below.

The South African Local Government Association (Salga), representing the nation's 257 municipalities, contends that the recently passed Electricity Regulation Amendment (ERA) Bill infringes upon municipal authority and violates the constitution.

The Bill primarily aims to facilitate Eskom's unbundling and establish an independent Transmission System Operator, enabling a competitive electricity market.

This reform, heralded as groundbreaking, aims to dismantle Eskom's century-long monopoly on electricity generation.

While Salga backs this objective, it asserts that certain definitions must be amended to avoid a Constitutional Court challenge.

Paton explains that the Bill's amendment fundamentally altered the definition of "reticulation" of electricity.

The revised definition greatly diminishes municipalities' authority to distribute and trade electricity, thereby undermining their ability to generate revenue.

"This of course is very alarming for municipalities...It does have serious implications."

- Carol Paton, Editor-at-Large – Business24

"I don't think it's possible to pass a law that is unconstitutional."

- Carol Paton, Editor-at-Large – Business24

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