Restructuring of the electricity distribution industry (EDI) is to be stopped immediately, Minister in the Presidency Collins Chabane announced on Thursday.
"Cabinet decided to terminate the EDI restructuring and discontinue the process of creating the regional electricity distribution (REDS) [bodies] with immediate effect," he told a media briefing following the executive's last regular meeting of the year.
Although the electricity distribution industry holdings (EDIH) had made significant progress in establishing the REDS, Cabinet approved a recommendation that the energy department take over the programmes previously carried out under the EDIH mandate, he said.
The department would review the whole electricity value chain with a view to developing an holistic approach to revitalise electricity infrastructure, energy security, as well as the financial implications.
An administrator would be appointed to attend to winding up EDIH.
The EDIH board would remain accountable until the end of the 2010/11 financial year, Chabane said.
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