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Electricity Act, 1987 (Act No. 41 of 1987)

16. Proposed Erection or Enlargement of Power Stations by Local Authorities

 

(1) Whenever any local authority intends to erect a power station, or to enlarge any existing power station to an extent exceeding within any period of 12 months 10 per cent of the existing rated generating capacity, it shall apply to the regulator for approval and shall submit to it a full report by a professional engineer on its proposals regarding the erection or enlargement.

 

(2) Before considering the application, the regulator shall call upon Eskom for a report on the proposals, and thereupon the local authority shall supply Eskom with such information as Eskom may require for the purpose of drawing up the report.

 

(3) In its report to the regulator Eskom shall state what in its opinion is the best course for the local authority to pursue, and in particular whether Eskom can itself generate a supply of electricity with advantage to the interest of ratepayers and consumers, and if so, Eskom shall submit its estimates and terms.

 

(4) The local authority shall pay to Eskom, in respect of any report furnished under this section, a sum of money the amount of which, if not agreed upon, shall be determined by the Minister.