Johannesburg - The much-delayed Independent System and Market Operator (Ismo) Bill is to be debated by the National Assembly this week. It is expected to become law before national elections next year.
Sisa Njikelana, the ANC chair of the portfolio committee on energy, said he was delighted the legislation was finally coming to Parliament. “Both the ruling party and the opposition are quite pleased,” he said on Friday.
The legislation allows for the formation of an independent system operator which would buy electricity from Eskom, co-generators and independent power producers and would assist in establishing a fairer energy playing field.
He said the National Council of Provinces would process the legislation after the National Assembly deliberations were completed on Wednesday. It was likely that the National Council of Provinces committee would deal with the legislation next year as this parliamentary session is coming to an end.
Independent Democrats MP Lance Greyling, who has fought for months for the bill to be put before Parliament, welcomed the legislation.
He said the measure “is a vital step in restructuring our monopolised electricity sector and was called for as far back as 1998 in the energy white paper. The bill will also bring urgently needed institutional reform of our electricity sector”.
For reasons which remained “mystifying”, the legislation was withdrawn from the National Assembly in June. It had been processed by the portfolio committee on energy during last year.
While Eskom denied any role in delaying the bill, it was widely believed it had been putting brakes on bill’s passage. Acting spokesman Andrew Etzinger said the power utility had been “participating in the parliamentary process concerning the Ismo bill and is not blocking or delaying its implementation”. He said Eskom supported a phased implementation of the legislation to manage security of supply “and other risks”.
Energy Minister Ben Martins, who will be piloting the bill, noted that it would create “an independent structure” as a state-owned company responsible for system operation and the purchase of electricity from power generators.
The energy committee on Friday agreed to a resolution which will be adopted by the National Assembly that a multidepartmental task team, including Eskom, the Treasury, the departments of Public Enterprises and Energy, must produce a due diligence report looking into the cost benefit of moving the assets of the transmission grid into the new independent operator.
The report must be produced by May 30, 2014. - Business Report