In South Africa, amidst a prolonged electricity crisis, the parliament has passed a bill aimed at reforming the electricity sector.
Introduced by the ruling African National Congress (ANC) and supported by the main opposition Democratic Alliance (DA), the bill seeks to open the national electricity market to private sector competition.
This move, occurring just 13 days before general elections, signifies a significant shift from the current monopoly held by the national electricity company, Eskom. Under the bill, private companies will be able to set their own tariffs and supply electricity directly to consumers.
Additionally, the bill proposes transferring the national electricity supply from Eskom to the National Communications Company of South Africa (NTCSA), enabling Eskom to purchase electricity from private producers.
While proponents argue that this reform will create a competitive environment, critics, such as the Congress of South African Trade Unions (COSATU), fear it may lead to the privatization of Eskom and potentially higher prices for consumers. The bill is regarded as a landmark economic initiative by the 30-year-old ANC government.
The timing of the bill’s passage, just days before the upcoming general elections scheduled for May 29, is significant. Election polls suggest that the ANC, for the first time in its history, may face a challenge in maintaining its majority, potentially falling below the 50 percent mark.