In an interview on Friday with EE Publishers investigative editor CHRIS YELLAND, Energy Minister Mmamoloko Kubayi confirmed that the Department of Energy (DoE) and the National Energy Regulator of South Africa (Nersa) have been served with court papers by the City of Cape Town demanding the right of the City to purchase electricity from independent power producers (IPPs).
Chris Yelland is investigative editor, EE Publishers.
This court action effectively challenges the so-called "single-buyer" model in South Africa, whereby Eskom is given the exclusive right to procure electricity from generators of electricity for resale, including electricity from renewable energy IPPs.
In the court papers, the City of Cape Town warned that if the court ruled that current legislation and/or ministerial determinations prevent the City from procuring electricity directly from IPPs, the City would challenge the constitutionality of such legislation and ministerial determinations.
In the interview, Kubayi sharply criticised Cape Town Mayor Patricia de Lille for "running to court" before engaging further and exhausting intergovernmental co-operation efforts to resolve these issues between the City and the DoE.
"This is a premature case. When there is a dispute between two spheres of government, the Constitution and law provides for negotiation. Mayor de Lille...