Business urges Eskom to withdraw legal challenges to bolster energy security

BUSINESS Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have strongly condemned Eskom's recent legal challenge against the National Energy Regulator of South Africa (Nersa), which granted five new distribution licences for electricity trading.

- BANELE GININDZA

The two organisations on Thursday argued that Eskom's actions were detrimental to the country's energy security initiatives and called for urgent governmental intervention.

In a statement, BLSA and Busa called on Eskom to withdraw all legal challenges against the five electricity trading licences as this was creating uncertainty and sending a negative signal to investors.

They said this was also delaying critical energy projects and may ultimately prolong the devastating economic and social impact of load shedding.

The government's stated policy position is the unbundling of Eskom, encouraging private sector investment in generation and transmission, and creating a competitive market to help solve the energy crisis.