South Africa News

City of Joburg: Cutting reliance on Eskom will result in cheaper energy for residents

Joburg city officials said that reducing reliance on Eskom would result in cheaper energy for consumers.

The city is currently hosting an energy indaba in a bid to find ways of reducing its dependence on the ailing power utility.

It also wants to establish how it can integrate independent power producers into the city’s energy supply mix.

The City of Joburg procures 90% of its power from Eskom.

The other 10% is procured from the Kelvin power station, an independent power producer.

Joburg’s energy redistribution company, City Power, said that the Kelvin power station currently supplied it at a cheaper rate compared to Eskom.

City Power acting CEO Tshifularo Mashava said that she believed that the involvement of more independent power producers would drive costs down.

“With IPPs you find that they have more innovative solutions, better efficiency and are able to sell it to us at a cheaper rate and they’ve proven it with Kelvin,” Mashava said.

Mayor Mpho Phalatse said that an eight-year plan by City Power to reduce dependence on Eskom would cost R26 billion.

She said that they were on a campaign to woo investors to ensure the implementation of the plan.

-EWN

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