No 'space' for private players

POWER: MINISTER WON'T ALLOW CHERRY-PICKING

- Antoinette Slabbert

Ramokgopa vows his department is working on a review of the electricity pricing policy.

Electricity Minister Kgosientsho Ramokgopa warned on Monday that non-government actors in the electricity supply industry will not be allowed "to think that they can carve out a space for themselves to provide for the affluent areas to the exclusion of poor areas".

"That indiscipline won't be allowed," he said.

This reminds one of Eskom's argument when it raised its objection to the applications of four companies to the National Energy Regulator of South Africa (Nersa) for licences to trade electricity.

Eskom's objection came unexpectedly as it had failed to object to four recent trading licence awards.

Cross-subsidisation 'necessary'

The utility at the time explained that "cherry-picking" by traders of commercial and industrial clients, who then buy from them instead of Eskom, will undermine the current system of cross-subsidisation. It is known that they collectively pay billions more for electricity to keep Eskom residential tariffs lower.