Tag Archives: Municipalities

Retailers should liaise directly with Nersa on municipal tariffs, Eskom says

Samantha Moolman | 8 August 2013 | Engineering news

It is becoming increasingly important for the retail and property sectors to liaise with the National Energy Regulator of South Africa (Nersa) about electricity tariffs set by municipalities, rather than focus on State-owned power utility Eskom’s proposed tariff increases, then Eskom spokesperson Hilary Joffe says.

Engaging with retail industry stakeholders at an event last month, hosted by the South African Council of Shopping Centres (SACSC), in Johannesburg, Joffe, who has since returned to the daily, Business Day, acknowledged the sector’s concern about municipal tariff increases and its impact on the sector.

Most of the retailers agreed that the tariffs imposed on them by their respective municipalities were crippling the sector. They called on Eskom to work with Nersa to assist them in challenging the municipalities to ease the blow of tariff increases on retail. Read more

Municipalities in a power trap

Peter Haylett | August 7 2013 | Cape Times

AN old Eskom engineer with extensive experience in building power stations once told me that electricity was cheap to make but expensive to distribute. That is just as true today as it was in his time.

Getting precise information is difficult, but it seems that the actual generating cost of electricity at the power station is about 35c per kilowatt-hour (kWh) or unit. Eskom’s average selling or wholesale price is 61c a unit and a small business buying electricity from a municipality can pay up to R2 a unit.

This is how grocers, with pencils behind their ears, used to work out their prices in the days before supermarkets. Read More

Eskom issues disconnection notices as municipal arrears pile up

20 Mar | Engineering News.

State-owned electricity utility Eskom has confirmed that a number of municipalities in the Free State, North West, Mpumalanga and, more recently, Gauteng are facing possible bulk supply disconnections, owing to nonpayment of arrears debt.

Arrears debt of older than 30 days stood at more than R1.17-billion at the beginning of March – the figure excludes the Soweto arrears, which stood at more than R3.3-billion in November last year.

Eskom stressed that disconnections were a last resort, but confirmed with Engineering News Online that it had initiated disconnection processes with a number of municipalities.

It refused, however, to identify the number or the names of the municipalities affected.

Eskom said only that the Premiers of Mpumalanga, the North West and Free State, as well as the Ministers of Finance, Public Enterprises and Cooperative Governance and Traditional Affairs had been “informed about the bad debt situation and its implications” and that engagements were ongoing.

Confirmation of the possible disconnections followed less than a week after Eskom held back from pulling the plug on the City of Matlosana local municipality, in the North West, after an eleventh-hour settlement.

The municipality, which includes the towns of Klerksdorp and Jouberton, made significant part-payments on the arrear debt, which stood at R91.8-million on February 7, and also committed to a payment agreement to settle the outstanding balance.

Eskom also confirmed that it had issued Matjhabeng local municipality, in the Free State, which encompassed the gold mining town of Welkom, with a notice of disconnection on February 26. A disconnection date of April 10 was set, unless the R145-million in arrear debt was settled.

The utility revealed that it was currently providing the National Treasury with comprehensive monthly reports on all arrear municipal debt, while senior management was also working closely with provincial treasuries to manage the financial recovery process.

Various reasons were being offered as to why a number of municipalities had stopped paying their monthly Eskom accounts, including the fact that monthly municipal electricity accounts had increased proportionately along with electricity prices.

About 40% of Eskom’s total sales were to municipalities, which on-sold the electricity to households and businesses in their areas of supply.

In the event of a defaulting municipality failing to agree to a payment arrangement, or defaulting on a payment agreement, Eskom initiated a disconnection process in line with the Promotion of Administrative Justice Act.

A defaulting municipality was informed in writing to settle the debt within 14 days. However, if a municipality did not settle the arrears in full and/or did not enter into a payment agreement, the municipality’s customers were then informed that supply would be disconnected after 30 days.

SOURCE: http://www.engineeringnews.co.za/article/eskom-issues-disconnection-notices-as-municipal-arrears-pile-up-2013-03-19

Solar energy consumers gridlocked

Cape Times 18 February 2013.

Cape Town – South Africa has so much sunlight that millions of householders could install solar panels on their rooftops and generate electricity to feed into the national grid but, because selling electricity is one of the major sources of income for municipalities, this is unlikely to happen.

This is a major stumbling block to the large-scale installation of small-scale solar power generation, delegates to the Solar Energy Conference were told last week.

Municipalities buy electricity from Eskom and sell it to residents at a marked-up price. They rely on this income to cross-subsidise many of the other services they provide…


RFP – Funding – Green cities and Towns

SAAEA | 17 December 2012.

The Department of Environmental Affairs and the Development Bank of South Africa have put out a request for proposals for funding from their Green Fund. This request is applicable to municipalities, provincial and national government, private sector institutions, research organisations, NGO’s and other interested parties. The proposals will be considered within the three areas of:

1.) Green Cities and Towns
2.) Low carbon economy
3.) Environmental and Natural Resource Management
The closing date is the 24th of October. Please find attached the necessary documentations