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Date
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Proposed municipal monopoly on electricity supply
Naam
The South African Local Government Association v Eskom Holdings SOC Ltd en Ander
Citation
The South African Local Government Association v Eskom Holdings SOC Ltd and Others
Begin / Start
Nov 2, 2021
Tipe / Type
Amicus curiae
Hof
Hooggeregshof: Pretoria
Court
High Court: Pretoria
Litigasiefase
Uitruil van hofstukke tussen partye
Phase
Exchanging of court papers
Volgende hofdatum
Opsomming
Die Suid-Afrikaanse Vereniging vir Plaaslike Regering (SALGA) het ’n hofsaak teen Eskom begin om in effek ’n monopolie oor elektrisiteitsdistrubisie aan munsipaliteite te verseker. SALGA vra vir ‘n verklarende bevel dat munisipaliteite eksklusiewe reg geniet om elektrisiteit binne hul jurisdiksies te versprei. Dit sou beteken dat geen eindgebruiker direk by ’n energieverskaffer sal kan aankoop nie.
Sakeliga is gekant teen die proposisie dat munisipaliteite sodanige eksklusiewe regte geniet of behoort te geniet. Sakeliga stem nie saam met die konstitusionaliteit van so ’n aanspraak nie. Meer belangrik, egter, is dat die monopolie op elektrisiteitsvoorsiening wat SALGA deur hofprosesse vir munisipaliteite wil bewerk, groot skade kan inhou vir eindgebruikers in vervalle munisipaliteite waar die munisipaliteite nie vir Eskom betaal nie. Om munisipaliteite, veral bankrot munisipaliteite, gedwonge kommersiële tussengangers te maak vir elektrisiteitsvoorsiening lei tot nie-markverwante kosteverhogings vir eindgebruikers en onbestendige voorsieningspatrone.
Sakeliga is reeds op rekord dat ons as vriend van die hof gaan toetree om unieke submissies voor die hof te maak. Sakeliga sal ’n ferm benadering volg eindgebruikers se vryheid in die mate wat dit bestaan om direk elektrisiteit by ’n verskaffer aan te koop, te beskerm.
Summary
The South African Local Government Association (SALGA) has launched a court case against Eskom to ensure, in effect, a monopoly on electricity distribution to municipalities. SALGA is requesting a declaratory order that municipalities should have the exclusive right to distribute electricity within their jurisdictions. This would mean that no end user will be allowed to purchase directly from a supplier of energy.
Sakeliga is opposed to the proposition that municipalities enjoy or should enjoy such exclusive rights. Sakeliga does not agree with the constitutionality of such a claim. More important, however, is that the monopoly on electricity supply that SALGA wants to obtain for municipalities through court processes may have serious negative implications for end users in decayed municipalities where the municipalities do not pay Eskom. Declaring municipalities, in particular bankrupt municipalities, to be mandatory commercial intermediaries for electricity supply will lead to non-market-related cost increases for end users and to unstable patterns of supply.
Sakeliga already is on record that we are going to be admitted as amicus curiae to make unique submissions to the court. Sakeliga will follow a strict approach so as to protect the freedom of end users in so far as it exists to purchase electricity directly from a supplier.
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