A group of Independent power producers in South Africa are demanding the setting up of an independent electricity grid that would challenge the dominance of Eskom.

The South African Independent Power Producers Association has said that an independent electricity grid would help encourage investments in electricity generation projects in the country. Several producers have voiced concerns that there is a conflict of interest between Eskom's role as a electricity generator and producer.

They said that the grid infrastructure domination by Eskom is a major roadblock stopping large scale investment in electricity generation projects by private sector players in the country. Association's MD, Doug Kuni said that an independent grid will allow private players to supply electricity.

"Eskom builds power stations and also owns the national grid. If there was an independent grid, independent power producers would come into the market. An independently owned and operated power grid is essential to solving South Africa's electricity supply problem," he said.

Meanwhile, Eustace Davie, director of the Free Market Foundation pointed out that the distribution infrastructure is facing difficulties in the country with a R35bn maintenance backlog that poses dangers to the electricity supply in the country.