City Power might take control of electricity distribution in Johannesburg
South Africa, Johannesburg: Eskom and City Power have signed an MoU on a possible transfer of Johannesburg electricity distribution to City Power.
Image source: ESI Africa
South Africa, Johannesburg: Eskom and City Power have signed an MoU on a possible transfer of Johannesburg electricity distribution to City Power.
South African electric utility, Eskom and the electricity company owned by the City of Johannesburg, City Power, have signed a memorandum of understanding (MOU) with a view to concluding a transaction in which Eskom would eventually sell or transfer the distribution of electricity in the parts of Johannesburg currently supplied by Eskom to City Power.
This comes a week after the City of Johannesburg signed a power purchase agreement with private electricity supplier Kelvin Power Station to add 100 MW of electricity supply to the city.
City Power currently holds the distribution licence to the rest of the City of Johannesburg. No transaction has been concluded yet, and in terms of the regulations, all affected stakeholders will be part of the decision-making process.
Should an agreement be reached on the discussions, the parties will seek the requisite regulatory approvals and give the affected customers an opportunity to contribute to a settlement in a public participation process. Among the regulators from whom approvals are required are the National Energy Regulator of South Africa (NERSA), the National Treasury, and the Department of Mineral Resources and Energy.
The parties are committed to keeping the public and affected stakeholders informed of the progress of the talks.
Source: ESI Africa
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