Cape Town council greenlights R5.1 billion electricity deal with Independent Power Producer
The City of Cape Town has secured a R5.1 billion contract with an Independent Power Producer to supply electricity over 20 years, aiming to reduce tariffs and enhance energy security amid concerns over potential impacts on residents and the need for public participation.
The City of Cape Town has approved a R5.1 billion deal with an Independent Power Producer (IPP) named Make A Difference Ventures. This contract aims to improve energy security and lower tariffs, according to the report presented to the council. The agreement spans three years and has a rate based on the consumer price index, rather than Eskom's unpredictable rates, which have been higher than the consumer price index. The City will also save R1.7 billion over the 20-year period.
Mayor Geordin Hill-Lewis committed to ending Eskom's monopoly on electricity supply, addressing concerns about exorbitant tariffs. The council approved the contract, despite objections from various opposition parties, emphasizing the benefits of increased energy security and affordability for residents. However, concerns remain about the impact on residents' electricity bills and the potential for increased costs.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
