Restructuring of the South African electricity distribution industry (EDI)
Date
2010-07-30T08:32:46Z
Authors
Coetzee, Noel G.
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Abstract
Abstract
The electricity distribution industry (EDI) restructuring in South Africa remains a long
and tedious process. The neo-liberal ideology based on the neo-classical theory which is
characterized by concepts such as buying, selling and owing are widely used in both
developed and developing countries since the 1980s. The study argued the influence of
the neo-liberal framework by way of exploring the concerns of organized labour with the
restructuring of the EDI.
The study was conducted in the Western Cape where the first Regional Electricity
Distributor (RED) was launched as a possible forerunner for the rest of the country. The
respondents composed of eleven representatives from key stakeholders as part of the
restructuring negotiations. The findings showed that the neo-classical framework
indicated its own limitations in that it only caters for broad macro-economic performance
at the exclusion of social programs especially in developing countries. Based on the
findings of the study and the limitations of the austere neo-liberal economic
requirements, a number of recommendations which would reinforce and revise the
current and out-dated EDI restructuring blueprint had been presented by stakeholders
such as organized labour at the EDI restructuring negotiations.
The study revealed that the new proposed blueprint recommendations as identified by
organized labour and other role players recognized the current macro-economic
challenges and as such should be engaged within a more refined corporatist institutional
environment. Such an environment should recognize the role of a broader social
constituency to be included. The concerns identified by organized labour should not be
read in isolation of the broader macro context but as part of the solutions for a better
restructured EDI.