
KZN municipal debt tops R61-billion
READ: No threat of City Power debt cutoffs by Eskom
The South African Local Government Association is sounding the alarm over ballooning municipal debt in KwaZulu-Natal, which has now surpassed R61 billion.
With households, businesses, and even government departments failing to pay up, the very foundation of service delivery is under threat.
Municipalities are being forced to borrow just to stay afloat a warning sign SALGA says cannot be ignored.
Lerato Phasha from SALGA's Municipal Finance division discussed this with eNCA.

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IOL News
3 minutes ago
- IOL News
Over 100,000 homes in KwaZulu-Natal lack electricity access
KZN Cooperative Governance and Traditional Affairs MEC, Reverend Thulasizwe Buthelezi Image: Supplied by KZN Cooperative Governance and Traditional Affairs MORE than 100,000 homes across KwaZulu-Natal still do not have access to electricity. KwaZulu-Natal MEC of Cooperative Governance and Traditional Affairs Thulasizwe Buthelezi revealed that in some parts of the province, there is still very low penetration when it comes to the provision of electricity. The MEC was speaking at an event for Eskom's National Transmission Company South Africa (NTCSA) Indaba this week. 'According to the Department of Mineral Resources' Electrification Master Plan, which provides a detailed breakdown of electrification backlogs per local municipality at ward level, there were 112,704 households without access to electricity as of the end of March 2023. An estimated R2.25 billion is required to address this backlog,' he said in a statement. The department confirmed on Thursday that these figures were referring to KwaZulu-Natal. The MEC stated, 'UMkhanyakude District Municipality in the far north of the province has the lowest electricity access ratio at 84.37%, followed by uGu District Municipality on the south coast at 89.02%, while all other district municipalities are above 90%.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'To reduce the electrification backlog, municipalities were allocated a total of R359.7 million under Schedule 5B for infrastructure and electrification of 7,421 households in the 2024/25 financial year. Eskom's allocation for household electrification in the same period is R209.1 million, targeting 10,002 new connections. Given uMkhanyakude's high backlog, significant funding was allocated to the district, aiming to connect 4,462 households. 'While these are positive improvements in the mission to increase the number of households with access to electricity, we are aware of challenges that often delay electrification projects. Common issues include the demands for 30% subcontracting to local SMMEs, which sometimes lead to disputes if they are not properly managed. At times, there are also upfront payment demands from contractors; we have also been made aware of these issues. 'Community unrest, due to the limited scope of work, is also contributing to the delays. Last month, in Vryheid, under Abaqulusi Local Municipality, a community protested and threatened to stop the project in the nearby ward because they felt like they were left out. However, we understand that electrification projects are implemented in phases. There is also poor terrain and inadequate access in some rural areas, causing cost overruns. Additionally, there is resistance to removing illegal infrastructure even when permanent connections are ready. 'Our province's population is expected to grow in the coming years due to urbanisation and new developments that are emerging in different parts. To meet future energy demands, transmission projects have been planned and are being implemented by Eskom in phases to ensure a sustainable supply and support economic growth,' said the MEC. Buthelezi added that the transmission load forecast indicates that KZN's consumption will increase from just below 6 gigawatts (GW) in 2023 to 7 GW in 2032, an average annual growth rate of 1.58%. He said some bulk projects have been delayed by labour unrest, but through Cogta's intervention, including war room meetings with stakeholders, significant progress has been made in this regard. The MEC said currently, there are major schemes that have been commissioned in the province as a precautionary measure to ensure a sustainable energy supply in KwaZulu-Natal. Eskom Middle Manager: Project Portfolio, Krish Govender, speaking of the importance of the gathering, said it was aimed at fostering more effective collaboration between the NTCSA, Eskom Holdings, government and entities. 'Reinforce our collective resolve to execute projects safely, efficiently, and with the highest standards of compliance - always in the best interest of the communities we serve.' THE MERCURY

IOL News
3 minutes ago
- IOL News
Eskom moves forward with Duynefontein nuclear power project amidst environmental concerns
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This plan follows a tumultuous period surrounding previous nuclear procurement strategies, notably when Electricity and Energy Minister Kgosientso Ramokgopa withdrew a Ministerial determination to procure 2 500MW of new nuclear capacity after widespread public consultation concerns. The ensuing legal challenges led to the determination's revocation, highlighting the necessity for transparent dialogues around sensitive energy projects. Eskom on Thursday clarified that any deployment of nuclear power will align with the forthcoming IRP and Section 34 determination to be issued by the Department of Electricity and Energy (DEE), taking into account significant regulatory changes that have unfolded in recent years. "The previous Section 34 determination allocated the Department of Mineral Resources and Energy (now the DEE) as the Procurer. This determination has since been withdrawn by the DEE Minister. Once the new IRP and new Section 34 are issued, DEE and/or Eskom will determine the funding options for the Nuclear Programme," Eskom said. "This Environmental Assessment (EA) allows an additional 4 000MW to be deployed on the Duynefontein site. The capacity to be deployed on the site will depend on the nuclear power capacity allocated in the new IRP." However, the announcement hasn't gone without criticism. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Environmental advocates, including the Koeberg Alert Alliance (KAA), have raised grave concerns regarding the outdated nature of the Environmental Impact Assessment (EIA) process, initiated in 2007. According to KAA's spokesperson, Peter Becker, significant changes in population density and the economic viability of alternative energy sources necessitate a reassessment of Duynefontein as a suitable nuclear site. "It is of note that the EIA consultants found that Duynefontein (Koeberg) was not the best site for a new plant, due to seismic risks and population density in the area," Becker said. "It appears the Department of Forestry, Fisheries and the Environment has been pressured to override the consultants' view due to economic factors. It is of course far cheaper to build a new plant where there is already existing infrastructure." However, Eskom rebuffed these claims, asserting that the EIA indicated that both Thyspunt and Duynefontein were appropriate sites, with Thyspunt suggested as the preferred location. Des Muller, managing director of NuEnergy Developments, said both Duynefontein and Thyspunt were sound sites to build large-scale nuclear power plants on. "These sites are both licensed for 4 000MW but, in the short-term, only two power plants will be built on these sites, leaving ample capacity for Small Modular Reactors (SMR)," Muller said. "Because they don't need the ocean to cool them, SMRs can be built anywhere and closer to the industrial load centres in our country. SMRs are also ideal to repurpose our retired coal power stations and keep those communities sustained and contributing to our economy." Muller also said that given South Africa's old coal power retirement program in the 2030s, both sites will have to be developed, converting these regions to net exporters of clean, reliable and affordable electricity. "These regions will also experience economic prosperity during the build and the 60 years of operation and maintenance, as well as from the energy security they will enjoy," Muller said. BUSINESS REPORT


eNCA
19 hours ago
- eNCA
Eskom confident it will keep the lights on
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