DA warning on electricity court action
THE official opposition has threatened that the DA-led City of Cape Town will go ahead with its legal action aimed at allowing municipalities to buy electricity from independent power producers (IPPs) if the government does not withdraw its opposition to the plan.
This came after President Cyril Ramaphosa announced in his State Of the Nation Address that the government would introduce measures to enable municipalities in good financial standing to procure power from IPPs.
Yesterday, DA leader John Steenhuissen said in a letter asking for donors to help fund the legal action mounted by the City of Cape Town: “No more political stunts. Our businesses are sitting in the dark, as more and more of our friends and family get laid off or leave... but it doesn’t have to be this way.”
He said the DA welcomed many of the short-term electricity measures announced, but said Ramaphosa should implement them urgently.
“We are giving President Ramaphosa seven days to immediately drop all opposition to the DA-run City of Cape Town’s court case to change the law to allow municipalities to buy electricity from independent electricity producers apart from Eskom,” Steenhuisen said.
“If not, we will continue with this legal action, to allow us to change South Africa’s laws so that South Africans are permitted to make, and sell power into the grid, and help whole communities keep their lights on.”
Dan Plato, the city’s mayor, said the metro cautiously welcomed the firmest commitment to date given by Ramaphosa in his Sona that municipalities in good standing would be able to buy power from IPPs in future.
“Urgent clarity is required from the national government on the legal and regulatory nuts and bolts of how this must happen,” he said.
The SA Local Government Association said Ramaphosa’s announcement was in line with the association’s Energy Declaration Summit held in March 2018.
Spokesperson Sivuyile Mbambato said the electricity supply and distribution industry in its current form was no longer viable for local government, national government, state-owned institutions and wider society.
“Embracing the transition is no longer a choice but a necessity if our energy sector is to survive. A shift towards more decentralised and variable solutions is desirable and will alter conventional energy production, distribution and consumption.
“Multiple innovative local power solutions are being developed by producers and consumers but are frustrated by regulatory barriers. Transformation of the industry must be inclusive, drive economic growth, social development as well as innovation,” Mbambato said.