South Africa needs an independent operator in the electricity sector, the Free Market Foundation (FMF) said on Tuesday.
A single grid owner and operator, South Africa's current model, resulted in a lack of competition, FMF director Eustace Davie told reporters in Johannesburg.
This created the potential for excessive charges and difficulties in gaining access to the grid. A better scenario would see an independent system operator created to buy power from competing countries, said Davie.
Allowing Eskom to go ahead with its 16 percent tariff increase application would be disastrous for the economy, he said.
“There is a price tsunami that's about to hit the country, and it's going to carry on for four or five years.”