W Cape is ready for IPPs to supply electricity - now it's up to Nersa

The City of Cape Town filed court papers in 2017 to challenge Eskom's exclusive rights to procure electricity for resale from independent power producers (IPPs), but is still waiting for a court date from the South Gauteng High Court.

Beverley Schafer, the Western Cape Government's MEC for Economic Opportunities and Tourism says the case has not yet been put on the urgent roll.

People are looking together to try and make sure that that gets put on the urgent roll, but for the moment that court date has not been set.

Beverley Schafer, WC MEC for Economic Opportunities and Tourism

Now more than ever it's probably the right time that the courts will decide that this is an urgent matter bearing (in mind) what's happening in South Africa at the moment.

Beverley Schafer, WC MEC for Economic Opportunities and Tourism

The really important thing is we actually need the legislation changed otherwise nothing is going to change in terms of whatever plans we have, whether it's in the Western Cape or in the rest of SA

Beverley Schafer, WC MEC for Economic Opportunities and Tourism

But how long is this going to take?

Well you know Nersa holds the key to everything. If the legislative process changes and Nersa allows municipalities to procure independent power from independent power producers, that would immediately just explode the IPP sector and we would have massive amounts of people choosing to go off the grid.

Beverley Schafer, WC MEC for Economic Opportunities and Tourism

But at the moment, Schafer explains, that migration would be illegal.

She says the time is right to strengthen the role of IPPs.

I've heard Minister Radebe say that in his press conference, that is about time that municipalities that are well run are able procure their own energy, but the point of the matter is Nersa must change the legislation otherwise it is illegal.

Beverley Schafer, WC MEC for Economic Opportunities and Tourism

To hear more about what needs to be done, listen below:


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