Not all licensees have comparable tariffs for sub classes of customers, like a domestic bulk tariff and not all information was available from all licensees, Diversity within the embedded network and economies of scale does play a role and Sometimes resellers are forced to take on other non- profitable services (like refuse removal, water management, etc) to be contracted to manage the electricity reselling. LEGISLATIVE ISSUES Constitution of the Republic of South Africa 5.1 Electricity Reticulation as a Municipal Function According to Schedule 4B of the Constitution of the Republic of South Africa - electricity reticulation is listed as a functional matter of local government in South Africa. There has been much legal debate as to the meaning of ‘reticulation’. Some scholars have argued that the term is synonymous with distribution and/or energy trading, whilst others have argued that reticulation should be viewed as a sub-set of distribution and/or energy trading in accordance with various boundary criteria, such as customer types, voltage levels, levels of energy consumption and so on. However, Parliament has proposed to define reticulation as follows: means trading or distribution of electricity and includes services ‘Reticulation’ associated therewith. In effect this definition will confirm local government’s legislative and executive authority over both distribution networks and the trading of electrical energy over these networks within a municipal area. Each municipality is a service authority for the electricity reticulation function for the whole of its jurisdictional area. This means that the municipality bears the responsibility to ensure that electricity reticulation services are provided to all consumers within its area/s of jurisdiction.
Not all licensees have comparable tariffs for sub classes of customers, like a domestic bulk tariff and not all information was available from all licensees, Diversity within the embedded network and economies of scale does play a role and Sometimes resellers are forced to take on other non- profitable services (like refuse removal, water management, etc) to be contracted to manage the electricity reselling. LEGISLATIVE ISSUES Constitution of the Republic of South Africa 5.1 Electricity Reticulation as a Municipal Function According to Schedule 4B of the Constitution of the Republic of South Africa - electricity reticulation is listed as a functional matter of local government in South Africa. There has been much legal debate as to the meaning of ‘reticulation’. Some scholars have argued that the term is synonymous with distribution and/or energy trading, whilst others have argued that reticulation should be viewed as a sub-set of distribution and/or energy trading in accordance with various boundary criteria, such as customer types, voltage levels, levels of energy consumption and so on. However, Parliament has proposed to define reticulation as follows: ‘Reticulation’ means trading or distribution of electricity and includes services associated therewith. In effect this definition will confirm local government’s legislative and executive authority over both distribution networks and the trading of electrical energy over these networks within a municipal area. Each municipality is a service authority for the electricity reticulation function for the whole of its jurisdictional area. This means that the municipality bears the responsibility to ensure that electricity reticulation services are provided to all consumers within its area/s of jurisdiction.
Concept%20Paper%20on%20Electricity%20Resellers%20in%20RSA%20-%2002%20Sept%202011.docx