Municipalities to produce and buy their own energy

The DA in the Western Cape welcomes the gazetting of the criteria for approving the Section 34 Ministerial Determinations by the Minister of Mineral Resources and Energy, Gwede Mantashe, to allow municipalities in good financial standing to produce and buy their own energy.

The DA has long called on national government to allow municipalities to produce and buy their own power. Loadshedding has shaken investor confidence and put strain on businesses, particularly SMMEs which are tremendous job-generators. For our economy to be saved we urgently need uninterrupted power supply.

The amendments gazetted by the national Minister is an important step in ensuring energy security in the province. The Western Cape has consistently recorded the highest number of municipalities in the country with clean bills of financial health, and these municipalities now have the opportunity to support Independent Power Producers (IPPs).

We, therefore, call the minister to accept the applications of municipalities in the Western Cape who have proven that they are in good financial standing.

This announcement further offers the renewable energy sector a boost in investment and development prospects which may stimulate growth and create jobs. This is critical in an economy which has already seen more than 2.2 million jobs lost in the last quarter.

As the Chairperson for the Standing Committee on Finance, Economic Opportunity and Tourism, I will, along with colleagues at the provincial legislature, provide continued oversight of energy in the province. I look forward to municipalities being able to supply their residents with energy produced in sustainable, cost-effective ways.