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Parties in Parly bump carts over DA MP’s bill to save Eskom

Parliament's Portfolio Committee on Mineral Resources and Energy decided on Tuesday to defer its decision on a private member’s bill that seeks to intervene in Eskom's energy crisis to next week, after committee members could not agree on whether to take it to public consultation.

The Independent Electricity Management Operator Bill (IEMO) is a private member's bill and comes from Member of Parliament for the Democratic Alliance, Natasha Mazzone. It was drafted with a view to adding capacity to the heavily burdened state-owned power utility, by sharing functions across the energy value chain.

The bill seeks to establish a power management utility as a private company, which would be insulated from both private sector manipulation and government interference. This entity would be governed in terms of a public-private partnership, according to the bill.

In terms of the IEMO, this entity would also manage the electricity system efficiently, ensure financial viability and act as a trader of electricity in line with government policy, ensuring efficient distribution within the integrated power system.

Previous incarnation

The bill, informally known as the cheaper energy bill, shares many elements with a previous bill, called the Independent System and Market Operator Bill, which was introduced by government to Parliament and passed by the National Assembly in 2013.

However, that bill was withdrawn in 2014. 

Member of Parliament for the Democratic Alliance, Kevin Mileham, fought to have the committee consider subjecting the bill to public hearings, but the African National Congress and the Economic Freedom Fighters opposed this.

Mileham said the Department of Energy, in a recent response to the private member’s bill, was wrong to question the constitutionality of the bill, saying that the bill was consistent with a law that was passed by the National Assembly before.

"Frankly, the department is reading too much into this bill to say that it is unconstitutional. This bill seeks to handle transmission of energy and not distribution, which it leaves to municipalities," argued Mileham.

'Opportunistic'

However, ANC MP Sibusiso Kula dismissed the private member's bill as opportunistic in the face of government's roadmap to transform Eskom, including a plan to unbundle the power utility into three entities – divided by generation, transmission and distribution.

"This is not the way we will turn the situation around. Why are we not giving Eskom's turnaround strategy an opportunity to run its course? Rather let government's plans for Eskom see themselves to conclusion because sitting the horse amongst the wagons [sic]," said Kula.

Another ANC MP, Thokozile Malinga, did not believe the question of management of the energy value chain arose, as the Integrated Resource Plan addressed this.

"IEMO is talking about something that the IRP is already seized with. Mixed energy. IRP is busy with that. Why are we putting the horse before the cart? We don't even want to give Eskom unbundling an opportunity," said Malinga.

EFF MP Dumisani Mthenjane said that the Independent Electricity Management Operator Bill was a declaration of intention to privatise Eskom and that the EFF would reject any attempt to leave South Africa's electricity in private hands.

ANC MP Mikatenko Mahlaule said he did not believe that the committee needed to entertain the Independent Electricity Management Operator Bill if the similar Independent System and Market Operator Bill already existed.

Committee chair Sahlulele Luzipo recommended that the committee confer the private member's bill to other relevant committees as well as Parliamentary Legal Services to iron out any potential outlying issues.

"We must check with other affected committees as a matter of internal consultation. Next week, if possible, we come back and follow the procedures that other structures and processes in Parliament guide us to," said Luzipo.

The committee agreed that the bill would be discussed again next week Tuesday after it was referred to other committees and Parliamentary Legal Services.

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