AfriForum requests to revoke municipality’s electrical distribution licence
They further state that it’s clear that AbaQulusi has failed to render a reliable service to consumers
AfriForum, AbaQulusi and NERSA had yet another meeting where AfriForum was requested to review their request to NERSA. Vryheid AfriForum requested to revoke AbaQulusi Local Municipality’s licence to distribute electricity during several meetings last year. This process started in 2018, but was impossible to continue during lockdown. The organisation agreed to allow more time to allow AbaQulusi to prepare their suggestions on how to improve their services to consumers, as well as improve the condition of all electrical installations.
Another two meetings followed and at the last meeting in November last year, AbaQulusi undertook to report back on the situation before the end of January this year. However this has not happened.
In the meantime, the situation changed drastically for the worse during last month. It has changed to such an extent that the organisation can no longer wait for another feedback meeting.
From January 1 to 24, there were daily outages (except on two occasions) and the outages are getting worse by the day. Entering a new month, the outages are not only daily, but longer during the days and evenings.
From January 17 to 20, the Zaailaagte area had no electricity for four days. Periods of 12 hours without electricity is becoming common (not including load-shedding). It is also no longer only outlying lines like Elandsberg, Zaailaagte and Stilwater that are affected. Vryheid, Bhekuzulu and Lakeside are now also affected daily.
In a letter to the municipality, it states that ‘the situation is not getting better – it is getting worse by the day. We are aware that there is the problem of cable theft and sabotage, but the main problem is non-maintenance. That is the core of the problem. With no maintenance, there is absolutely no chance of the situation improving. The situation will deteriorate further and faster as time goes by.’
AfriForum has decided to take the next step – a decision based on facts, the present financial situation of the municipality, and the availability of qualified and competent employees in the municipality.
They further state that it’s clear that AbaQulusi has failed to render a reliable service to consumers. There is also no visible improvement of any service; in fact, it has become clear that service delivery is going to worsen even further.
AfriForum is mandated to act in the best interest of the community and consumers. The organisation has therefore decided to continue with their request to NERSA to revoke AbaQulusi’s licence to distribute electricity in order to appoint a capable institution / persons to take over the distribution of electricity.
“This decision may lead to litigation, but AfriForum believes this is the only way forward,” concluded AfriForum Vyheid chairman André van der Walt.
In the letter to NERSA (February 1), AfriForum states: “We herein confirm that we are acting on behalf of our members in Abaqulusi Local Municipality.
Abaqulusi Local Municipality is a holder of a licence granted or deemed to have been granted by the regulator (NERSA) under the Electricity Regulation Act, 4 of 2006.
The aforementioned licence is provided to the licensee on the condition that certain conditions are met, as more fully set out in the NRS 047-1:2002 document relating to the quality of electricity services, as well as the NRS 048-1:2002 document relating to the quality of the electricity supply.
“On evaluating the compliance of the municipality with the provisions of said documents, we have noted that they have failed to provide services in accordance with the standards prescribed. We specifically draw your attention to the following aspects as stated in provision 4.5.1, 4.5.2 and 4.5.3 of the NRS 047-1:2002 document:
1. Unavailability of fault-reporting centres
2. Hours in which faults may be reported, bearing in mind that a licensee shall provide a 24-hour telephone service to receive reports of faults from customers
3. Effective fault-reporting procedures
4. Effective telephone answering response time
5. The time in which the electricity supply is restored
6. After forced interruptions, the supply should be restored as follows:
• 30% within 1.5 hours
• 60% within 3.5 hours
• 90% within 7.5 hours
• 98% within 24 hours
The above represents the worst-case scenario and should be improved upon whenever circumstances permit. We had multiple meetings and communication with the municipality, as well as NERSA regarding this issue, to no avail. Our correspondence with the municipality, as well as NERSA, started in 2018 and is still ongoing. The following meetings were held between us, the municipality and NERSA in order to improve the situation to no avail:
1. September 3, 2018
2. October 11, 2018
3. May 15, 2019
4. November 2023
The ongoing electricity supply interruptions are detrimental to various sectors and aspects of the economy, as well as the daily lives of the residents. Efforts to improve and stabilise electricity infrastructure are crucial for fostering economic growth and sustainability.
Due to the above, we urge you in your capacity as regulator to enforce the provisions of Section 18 of the Electricity Regulation Act, 4 of 2006 in order to consider the allegations in a sitting of the tribunal and based on the outcome of same to provide the licensee with a notice requesting that it adheres to the requirements as set out above. We request that the ongoing failure of the licensee should be penalised as provided for in Section 18(4) of the Act.”
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