Eskom loses power monopoly

[CorneN]

Johannesburg - The government opened the door for independent power producers by announcing the National Integrated Resource Plan on Thursday, scotching Eskom's plans to stall construction of the Kusile power station.

http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2563979

I liked this user comment:

Eskom can finally be left with all the free-loading non paying customers and the efficient private producers can snap up the paying customers.

 

[protzkrog]

this is going to have a great impact on SA's power situation, free market ftw!

 

[Pilgrim]

Awesome news indeed!

Just one question, does eishkom still get government funds? If so, they, like SAA, will be able to force prices down by running at a constant loss. Not good for competition.

Government should break eishkom up in small pieces and sell them all!

 

[davemc]

Free market only works when collusion is not allowed.

 

[Kosmik]

I say Durban should set up it's own tidal power station off the bluff. I'm sure that would generate huge amounts of power with the tidal forces having to flow around that rock

 

[WilD_CaT]

Awesome news indeed!

Just one question, does eishkom still get government funds? If so, they, like SAA, will be able to force prices down by running at a constant loss. Not good for competition.

Government should break eishkom up in small pieces and sell them all!

+1

Yup the state cannot be allowed to compete with private enterprises when they can legally force people to pay them money through taxes.

If Eskom is still subsidised all the other market players won't be able to compete on price, or will find it difficult and will instead resort to competing on quality of service. Unfortunately the nature of the service doesn't give much room for "interesting" products. Either you have electricity or you don't.

 

[Smooth Criminal]

Eskom down, Telkom to go