Eskom
Distribution
Since the establishment of the first Retail Electricity Distributor (RED) in Cape Town, Cabinet resolved on the 14th September 2005, that the EDI Restructuring approach must be revised as follows:
- Create 6 Metro REDs, after the Local Government elections in March 2006
- Detailed financial impact to be undertaken for the non Metro REDs, including financial modelling of the National Distributor - to be completed by the 31st March 2006
- By 31st March 2006 RED boundaries must be confirmed (subject to the process to asses the viability thereof) for the selected local Municipalities and neighbouring Metros, including whether they should form part of the Metro RED, the National RED or if it is feasible be in a separate RED
- By 30th June, a framework must be in place for the transfer of the Eskom assets, liabilities and staff
- Introduction of restructuring legislation to provide the legislative framework for RED formation and to remove the currently open-ended process.
Eskom Distribution Division will be used as the basis to establish the National Distributor and it will be a subsidiary of Eskom for the short to medium-term (3-5 years) and thereafter it will become an independent public entity.
