City Power Infrastructure to Receive Attention

This was the comment by Executive Mayor Helen Zille in signalling the green light for the transferring of assets and staff from the City to RED1 at the Mayoral Committee Meeting on 26 April 2006.

The establishment of RED1 is part of national government's direction of restructuring the Regional Electricity Distributor (RED) system to consist of six metropolitan REDs and one National RED. The new direction will not affect the roll-out of this initiative led by RED 1 in the City of Cape Town.

The new direction coincides with the RED1's First Phase implementation. Once Cabinet has approved the boundaries of the proposed National RED, RED1 will discuss possible incorporation of neighbouring municipalities into RED1.

"We must now focus on the transfer of assets and staff from the City and Eskom's operation in City areas to RED1 by 1 July 2006. We must consult with the staff and handle the process within the framework of labour legislation," Mayor Zille says.

"It is also important to adhere to the strict budgetary parameters of the process. The staff and the budget are important components of the process," she says.

Saleem Mowzer, Chief Executive Officer of RED1, welcomed the endorsement and support from the Mayor and Mayoral Commitee. "Our task now is to ensure the transfer of assets and staff and to establish the organisation. RED1 will focus on its task to distribute electricity in a cost-effective and productive way, to assist with economic growth and also to address the social needs of communities who should enjoy the benefits of electricity supply."

Since the establishment of RED1 in July last year, operating and transitional plans for transfer agreements have been concluded between RED1, the City of Cape Town and the Cape Town Metro portion of Eskom.

According to the RED1 budget, it will spend some R1,3bn on refurbishment and growth in the Cape Town metropole over the next three financial years.

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