Regional electricity distributors to operate by 2005

Posted On Tuesday, 25 May 2004 02:00 Published by eProp Commercial Property News
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President Thabo Mbeki says South Africa's first Regional Electricity Distributors will be ready to operate by June 2005.

Thabo MbekiPresident Thabo Mbeki says South Africa's first Regional Electricity Distributors will be ready to operate by June 2005.

Mbeki this morning delivered his State of the Nation Address, at the opening of the third democratic Parliament, following his re-election after the country's third democratic general elections in April.

"The first Regional Electricity Distributors will be ready to operate by June 2005, with the whole process of the establishment of these structures to be completed by January 2007," said the President.

"Through our integrated system of government, with a strengthened local government working with our state enterprise, Eskom, we will, within the next eight years, ensure that each household has access to electricity," he said.

Regional Electricity Distributors (Reds) would consist of joint-venture companies, formed by Eskom and local authorities. The REDS would purchase electricity from generators such as Eskom, on the basis of wholesale purchase tariffs established by the National Electricity Regulator (NER).

Meanwhile, President Mbeki announced that a tender for the provision of new generating capacity to provide for the growing energy needs from 2008, will be issued publicly in December and should be awarded during the first half of 2005. 



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