South African Local Government Association (SALGA) President Parks Tau has called for a decentralised energy supplier and more competition in the energy sector.
According to Tau the South African electricity and energy industry is still heavily reliant on a single supplier and operated in a traditional form which is not sustainable. “The large scale utility business model is unsustainable and has to be fundamentally transformed. Whether we like it or not, electricity demand and sales are declining and this affects both Eskom and municipalities’ revenue,” said Tau. “The rules need to change and provide for decentralised energy with both local government and consumers fulfilling a key role within the energy space, as opposed to only large-scale new generation,” said Tau.Remaining mindful of challenges
Calling for a change in the type of energy used and the distribution thereof to municipalities while also maintaining the municipal purse, Tau said stakeholders had to be mindful of the challenges faced. “The challenges we face include decarbonisation, decentralisation and digitalisation,” he said.Despite these challenges, the SALGA head noted that the changes in the energy sector had an impact across various levels.
“The impact of the transition will transform our economy, create employment opportunities, protect our environment and climate, and improve the quality of life of our citizens. Every sector of society has a role to play and all of us in the energy sector need to lead the transition for the benefit of all our citizens,” said Tau.
