Business grouping sides with Eskom against ‘municipal monopoly’

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Tariffs in Eskom distribution areas tend to be much lower than those supplied by local municipalities, which Salga says constitutes unlawful discrimination. Moneyweb

The business grouping Business League, which is part of the Solidarity movement, plans to join the court battle in which municipalities are trying to get the exclusive right to distribute electricity countrywide.

How much electricity R1k, R2k will buy you in SA’s biggest metros Salga further wants the court to compel Eskom to enter into a service level agreement in areas where it does the distribution. Eskom as well as some private distributors, such as AECI and Damplaas Kragbron situated in the Free State near Petrus Steyn, are opposing the Salga application. According to Eskom distribution is a concurrent function that both itself and municipalities may execute.

 

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