Cape Town takes govt to court in bid to buy electricity from IPPs

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Energy Minister Mmamoloko Kubayi. (Pic: Liesl Peyper, Fin24)
Energy Minister Mmamoloko Kubayi. (Pic: Liesl Peyper, Fin24)

Johannesburg - Energy Minister Mmamoloko Kubayi on Friday confirmed that the Department of Energy (DoE) and the National Energy Regulator of South Africa (Nersa) have been served with court papers by the City of Cape Town demanding the right of the city to purchase electricity from independent power producers (IPPs).

This court action effectively challenges the so-called “single-buyer” model in South Africa, whereby Eskom is given the exclusive right to procure electricity from generators of electricity for resale, including electricity from renewable energy IPPs.

In the court papers, the City of Cape Town warned that if the court ruled current legislation and/or ministerial determinations prevent the city from procuring electricity directly from IPPs, the City would challenge the constitutionality of such legislation and ministerial determinations.

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