Eskom in hot water?

GREEN ENERGY PLAN: 'AGGRESSIVE' UTILITY MAY FACE COMPETITION AUTHORITIES

- Antoinette Slabbert

Eskom may have to face the competition authorities after it issued an invitation to large power users to enter into long-term power purchase agreements (PPAs) to buy solar energy to be generated at its old power stations.

The Request for Proposals (RFPs) is seen as an effort by the utility to confront the perceived threat from the growing private electricity trading sector head-on.

Dr Grové Steyn, MD of Meridian Economics, considers Eskom's move as aggressively anti-competitive, especially as the group is still a vertically integrated utility that is subsidised by state bailouts.

The South African Independent Power Producers Association (Saippa) is considering a complaint to the Competition Commission.

"We have been discussing it, and it is on the agenda of our management committee meeting tomorrow," Saippa chair Leonè Human told Moneyweb.

According to an Eskom press release, the utility is "inviting large power users to procure 291MW of solar photovoltaic (PV) capacity through long-term PPAs from Eskom-owned renewable energy sites".