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Viability of the Establishment of a National RED

ENERGY INTENSIVE USERS GROUP SOUTH AFRICA. Viability of the Establishment of a National RED A presentation to the Portfolio Committee on Minerals and Energy 21 June 2006 By Ian Morison EIUG Chairperson. VIABILITY OF ESTABLISHING A NATIONAL RED. Membership of the EIUG.

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Viability of the Establishment of a National RED

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  1. ENERGY INTENSIVE USERS GROUP SOUTH AFRICA Viability of the Establishment of a National RED A presentation to the Portfolio Committee on Minerals and Energy 21 June 2006 By Ian Morison EIUG Chairperson

  2. VIABILITY OF ESTABLISHING A NATIONAL RED Membership of the EIUG • Voluntary Association of Large Industrial Electrical Energy Users. • Membership open to end users who operate sites consuming in excess of 100GWh/a. • Mainly involved in mining, minerals beneficiation and heavy industry. • Members consume 40% of electricity sold in South Africa.

  3. VIABILITY OF ESTABLISHING A NATIONAL RED EIUG Position on REDs EIUG position remains that all REDs must: • Be financially viable and sustainable • Provide excellent service and reliable quality of supply • Undertake electrification roll-out • Be professionally managed • Implement pricing equity • Be regulated by the NERSA • Be public not municipal entities

  4. VIABILITY OF ESTABLISHING A NATIONAL RED EIUG Submission on National RED • EIUG supported the six REDs model. • The question is which model is most suited to South Africa’s challenges now? • If national priorities now favour the National RED model then the EIUG would support this and will work hard to make it succeed. • Government must commit to a model and complete distribution restructuring. • Transition must be urgent and non-voluntary (through legislation).

  5. VIABILITY OF ESTABLISHING A NATIONAL RED The EIUG expresses it’s appreciation for being able to make an input to Decision Making on the Restructuring of the EDI. Thank You for Your Attention

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