South Africa: Media Statement - Planned Unbundling of Eskom Must Not Result in Job Losses - Committee Hears

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The unbundling of Eskom into three separate companies, that is proposed in the Electricity Regulation Amendment Bill must not result in any job losses in the sector, the Portfolio Committee on Mineral Resources and Energy heard.

The committee conducted public hearings on the Bill today at the Potchefstroom Banqueting Hall in the Dr Kenneth Kaunda District Municipality in North West where members of the public raised their fears about the planned reforms in the electricity sector which will include the unbundling of Eskom that will come with the passing of the Electricity Amendment Bill.

Other participants supported the idea of opening the market to allow for competition in electricity trading, saying Eskom's monopoly was the cause of the electricity crisis and that it must come to an end.

The committee is embarking on a nationwide public hearings process to solicit citizens' input on the draft legislation that seeks to introduce wide ranging changes in the electricity sector.

North West is the third province to host the public hearings after Limpopo and Mpumalanga and it hopes to cover the remaining provinces by the first week of December.

During today's public hearings others warned against any possible privatisation of Eskom, informing the committee that in the past the privatisation of state entities had resulted in job losses.

There were also those who told the committee that they did not have enough information to make informed opinion on the bill and asked Parliament to improve on its public education programme.

The Bill aims to effect changes to the Electricity Regulation Act in order to provide for additional electricity generation capacity and infrastructure, as well as the establishment of the Transmission System Operator SOC Ltd.

The draft legislation also seeks an open market platform that will allow for competitive electricity trading; and to assign the duties, powers and functions of the Transmission System Operator SOC Ltd to the National Transmission Company South Africa SOC Ltd.

Tomorrow, the committee will conclude the North West leg of public hearings on the Bill in the Bojanala Platinum District Municipality at JM Ntsime High School in Mogwase,starting at 10h00.

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