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SA to allow municipalities to source their own power

Rather than buying electricity solely from Eskom.
Image: Dwayne Senior/Bloomberg

According to the Government Gazette, South Africa will allow municipalities to source their own power rather than buying electricity solely from the state-owned utility, potentially easing a dispute with its second-biggest city, Cape Town.

Earlier this year, a judge ordered further negotiations between the City of Cape Town and the energy ministry after the municipality sued the government because it wasn’t allowed to proceed with its own energy procurement plans. Under the planned rules, the local authority would still need government permission to do so, which it objects to.

In addition to wanting to generate more power from renewable resources, South African cities including Cape Town, Johannesburg, the adjacent industrial hub of Ekurhuleni and Tshwane, which includes the capital, Pretoria, have been subjected to regular power cuts because state-owned Eskom Holdings SOC Ltd. cannot meet demand and distribution infrastructure is dilapidated.

Cape Town has outlined plans to source electricity from solar plants and waste-to-power projects at its landfill sites. Eskom produces most of its power from coal.

Leila Mahomed-Weideman, director of sustainable energy markets for the City of Cape Town, said she couldn’t immediately comment.

© 2020 Bloomberg


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I presume then that residents will be able to bypass the municipalities and buy direct from Eskom in the future as the corruption and incompetence in most municipalities will ensure that the price of electricity will go through the roof if they are given free reign.

About time! Yes. I live in Cape Town and thanks to hydropower from the Steenbras Dams we have been one level better than Eskom supply.

Steenbras is storage, not generation. They take offpeak grid energy when it is cheap and available, pump water up, then release it in peak periods when power is expensive and scarce.

Any proof that the pricing of the electricity varies at all for the metro due to time of day?

What is correct is that it’s pumped storage, which does generate power when there isn’t enough and can make loadshedding one stage lower for Cape Town.

Supersunbird : CPT pays Eskom on its Megaflex tariff. Google is your friend

Nevertheless, our businesses are running when the rest of the country is shut.

And what about Municipalities that owe Eskom? Eskom will cut them off and they’ll just go create new debt somewhere else.

Not gonna happen. Private electricity suppliers won’t sell to these municipalities if they are ‘black listed’. We know who the bad payers are.

The MW article is lacking in details that are reported elsewhere, the municipalities have to be in good financial standing (clean audits I assume) to be allowed to buy power elsewhere.

Good, now the DA can add a power levy to our rates, like they did with the water levy.

Sadly Chris, you can whine all you like but budgets need to be balanced. Just maybe be glad DA municipalities run better and to a lot less corruption than ANC ones. Of course catering for the influx of hosts of free rising refugees from ANC parts of SA does not help. Maybe direct your grumpiness there?

Why do you not move to Soweto — the power is free there and no DA to influence your choices !!!!

Thanks Casper, I will consider that!

In fact … forget Soweto….I heard every meter can be gippo’ed… a lifetime of free electricity.

Eskom is aware of this… Cos their own workers are doing it behind the scenes.

@Dragon, heard about the guy who did just that and they eventually picked it up..He now sits with a R100K bill of arrears. Best you make some provision for this if you want to go that route.

Rather force municipalities to stop the theft of electricity and to collect the debt on the outstanding amounts.

And that will help Western Cape municipalities how if the rest of the municipalities in SA don’t do it vigorously enough? Will you be executing municipal workers for failing to meet collection targets, or how will you be forcing it?

Doesn’t sound too pragmatic.

It is a good thing, but before you break out the champagne : the councils will NOT be charging us less for any energy they source cheaper.

1. Sort your inefficiencies and loadshred vulnerabilities. Solar thermal, LED lights, gas stove
2. Invest in self-generation.

We WILL be milked by councils by way of energy rates and our rates and taxes because we are captives. Not much to do about rates & taxes, but we can all reduce our scope of grid dependence,

Well I hope any new supplier to a municipality has an agreement so tight that they pay daily or it is cut off, not 30 billion later.

End of comments.



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