Madame Speaker,

This bill has gone through a rough ride. It was rejected by the different organisations at the hearings including the portfolio committee. There were a number of points on which we disagreed however, we are happy to conclude that they have been amended accordingly by the Department.

Among the definitions, 'reticulation" caused quite a debate and opened the word to many interpretations. We are pleased to note that the Department has explained what was intended by reticulation - that is: 'trading with or distribution of electricity by a municipality in the community within its area of jurisdiction and includes services associated therewith".

We were also concerned about municipalities being reduced to only reticulating to customers requiring 11 and 22KV only. This was going to be a serious set back because it would be depriving them of the light industrial or commercial customers.

Another concern was that the municipalities would have to keep separate financial statements of the reticulation business. However, it was pointed out that ring fencing was for proper financial reporting and preparing the process toward the introduction of RED"s. Our debate was that some municipalities did not have dedicated staff for water and electricity therefore there will always be an overlap of services.

We sincerely hope the amendments will help to reduce the price of electricity. We are also aware that Eskom thinks that we do have the cheapest supply of electricity in the world. I, however, would like to differ as many of our people are unemployed and those who are employed receive low wages. It is therefore difficult to judge us by world standards.

We also need to ensure that the municipalities have proper skilled people to deliver electricity of high quality.

Finally, we have been concerned about the constitutionality of the amendment but we believe that the amendments in its current form will be acceptable.

The IFP supports the amendments.

Thank you


FOR MORE INFORMATION:
Mr Hennie Bekker MP 083 255 4520
Liezl van der Merwe 083 6117470