Municipalities decry unconstitutional electricity law; ‘malicious’ change infringes on powers.

Did you know that municipalities in South Africa have a Constitutional right to distribute electricity? The recent passing of the Electricity Regulation Amendment (ERA) Bill by Parliament has sparked debate, with the South African Local Government Association (Salga) challenging its constitutionality. Salga, representing 257 municipalities, believes that the bill infringes on municipal powers.

The ERA Bill aims to unbundle Eskom and establish an independent Transmission System Operator to introduce competition in the electricity market, ending Eskom’s monopoly. While Salga supports this reform, they intend to contest the bill in the Constitutional Court if certain definitions are not revised.