a. Local Government Local government, represented by SALGA, had the following input. SALGA agreed there are challenges around the PPA's with Municipalities, however there are also some success stories and some players in the sugar industry in KZN are beneficiaries of this. They also indicated that it is not the intention of Municipalities to frustrate industry. Some industries, watching developments in the REIPPP programme, have been moving the goalposts making it difficult for municipalities. Municipalities also indicated that, contrary to belief that Municipalities will lose out if industry starts co-generating, it is not the case. Municipal tariffs for electricity are made up of tariff costs and infrastructure costs. The tariff costs are mostly the Eskom costs and as such are of no benefit to Municipalities, whereas the infrastructure costs will need to be paid by co- generators when using the grid. This is utilized to maintain the grid. In conclusion, Municipalities indicated that they are willing to negotiate and discuss challenges with industry. The telecommunications industry indicated that this is already happening, at the request of Municipalities.