Electricity bill debate delayed yet again

Cape Town - The long-awaited parliamentary debate on the Independent System and Market Operator Bill was postponed again on Wednesday, all but ruling out its passage this year.

Democratic Alliance energy spokesperson Lance Greyling said he suspected the delay was due to political meddling meant to protect Eskom's operating control of the country's electricity transmission grid.

The main aim of the bill is to place operation of the grid under an independent entity, which would then buy electricity from Eskom and independent power producers. This is intended to make it easier for new players to enter the market and make the price of electricity more competitive.

"Eskom has resisted this move for over a decade and the DA suspects that there has been ministerial interference in the processes of parliament, in order to avoid Eskom relinquishing their control of the grid," said Greyling.

He said the bill had been removed from the debate schedule without consulting the portfolio committee on energy, where it was drafted last year and approved by members of the ruling party and opposition in March.

Committee chairperson Sisa Njikelana, who said earlier this week he was delighted that the legislation was finally coming before the national assembly, could not immediately be reached for comment.

The bill was also withdrawn from the national assembly in June.

Eskom has denied trying to block its passage, but said it favoured a staged implementation to ensure stability of electricity supply.

Last week, the portfolio committee agreed that a resolution could be adopted by the national assembly that a task team comprising Eskom, National Treasury and the departments of energy and public enterprises produce a due diligence report on the cost benefit of moving the assets of the grid to the new independent operator.

It was a compromise because of resistance from Eskom to moving the assets off the grid.

Greyling said he felt the delay was an insult to the committee's work and its efforts to accommodate the utility's concerns.

He warned that it would be a setback for efforts to lower electricity prices if the bill where not debated during the lifespan of the current parliament, which expires before next year's elections, and therefore lapsed.