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The SA Local Government Association (Salga), which represents the country's 257 municipalities, says the Electricity Regulation Amendment (ERA) Bill passed by Parliament last week usurps municipal powers and is unconstitutional.
The amendment bill's main purpose is to give effect to Eskom's unbundling and make provision for an independent Transmission System Operator, which will provide a trading platform for a competitive electricity market. It has been hailed as a groundbreaking reform that will break Eskom's 100-year monopoly on electricity generation.
Salga says it supports this aspect of the bill, but would have to challenge the bill in the Constitutional Court if key definitions are not changed.
