KwaDukuza Municipality electricity crisis deepens
Losses equate to more than 172-million kilowatt hours of power.
An historically high R262-million in electricity losses were recorded by the KwaDukuza Municipality (KDM) in 2022/23.
That is R25-million higher than the previous financial year, itself R56-million more than in 2020/21.
The losses equate to more than 172-million kilowatt hours of power, or 25% of all the electricity that KDM purchased from Eskom.
National targets for losses are between 8 and 12% while an upper limit of 3.5% is targeted internationally.
Within the last week alone, prolonged outages have hit Sheffield, Salt Rock, Stanger Manor and surrounding communities.
Deepening losses by the electrical department are the single greatest risk to KwaDukuza’s ability to function as a financially sound municipality.
Councillors on both sides of the aisle repeated their concerns at a meeting last week, as they have done for the past few years, but little has changed.
KDM will soon hold an energy indaba to try and tackle the issue, after which they hope to reduce losses by at least 2% in the next financial year.
“The municipality further applied for funding from the Swiss Government agency (SECO) in a bid to fund the pilot implementation plan of the approved Non-Revenue Electricity or Energy Loss strategy,” said KDM mayor, Lindile Nhaca.
It is hoped the strategies will target illegal connections, faulty meters and relevant by-laws while also stabilising the grid.
For now, however, the cost is borne by the rates base forced to deal with a 15.1% electricity rate increase in 2023/24 after it was approved by the national regulating authority.
Rates hikes have compounded an already difficult economic climate in the municipality, which saw consumer debt reach R323-million at the end of June.
That is an increase of almost R92-million over the course of the financial year.
“We note a concerning increase in consumer debt. It is an indication that indeed, the increase imposed on residents were unaffordable,” said Democratic Alliance caucus leader, Tammy Colley.
Elsewhere in mayor Nhaca’s fourth quarter budget assessment speech to council last week, she confirmed funding for the KwaDukuza and Ballito taxi ranks.
R6-million has been allocated for widespread improvements at the KwaDukuza rank, which include upgrading toilets, shelter and lighting on the site, among other changes.
The upgrades will begin in the second quarter of the current financial year.
R2-million has been allocated for upgrades to toilets and shelter at the Ballito taxi rank, although no date has yet been set.
Mayor Nhaca committed to meeting with the Dolphin Coast Taxi Association to begin the process.
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