Latest news with #SALGA
IOL News
4 days ago
- Business
- IOL News
SALGA and business groups differing views over Nersa's electricity trading licences
The National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities has sparked fierce debate with Salga and Eskom raising concerns. Image: Supplied A sharp divide has emerged between local government and business groups over the National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities. The South African Local Government Association (SALGA) said it had deep concern over NERSA issuing licences before finalising trading rules, warning that the move poses a serious threat to the financial sustainability, constitutional mandate, and operational integrity of municipal electricity distribution systems. SALGA, which represents municipalities, said finalised rules were essential to ensure 'clear definitions of customer eligibility and trader rights; protection of redistributive and cross-subsidisation obligations embedded in municipal tariffs; [and] safeguards against predatory competition in licensed municipal areas of supply.' Among its key concerns is the potential erosion of municipal revenue, which funds not only electricity services but roads, waste management, and water supply. SALGA said, 'allowing traders to target only high-value, reliable customers would leave municipalities with a disproportionate share of defaulting customers.' SALGA also warned of 'infringement of constitutional mandates' and called for Nersa to suspend the approval of further trading licences until a transparent and balanced regulatory framework is finalised and consulted upon. However Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged Eskom to drop its legal challenges to the same licences. The organisations argue that litigation is undermining energy reform and delaying much-needed investment in new generation capacity. 'Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution,' said BLSA chief executive Busi Mavuso. 'South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid, now. For Eskom to spend public money on litigation designed to frustrate the very reforms government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.' BUSA chief executive Khulekani Mathe said: 'Our goal as a nation must be a reliable and affordable supply of electricity for every South African. This requires collaboration, not litigation.' He called for Eskom to align its actions with the President's Energy Action Plan and to support 'a vibrant and competitive market that encourages much-needed additional investment… key to longer-term energy security and making South Africa globally competitive.' While SALGA warns of 'destabilising the sector' without firm rules, BLSA and BUSA insist that delaying private entry into the market will slow progress towards ending load-shedding and reviving the economy. THE MERCURY
IOL News
24-06-2025
- Politics
- IOL News
Limpopo municipalities owe Eskom R1. 6 billion; blame infrastructure tampering and theft
Electricity and Energy Minister Kgosientsho Ramokgopa placed much of the blame for persistent power supply challenges in Limpopo on illegal activities such as meter bypassing, infrastructure vandalism, and unauthorised electricity connections, particularly in densely populated urban and rural communities. Municipalities across Limpopo owe Eskom a staggering R1.6 billion in unpaid electricity bills, with the bulk of the debt linked to persistent issues such as electricity theft, infrastructure tampering, and non-payment by end-users. This was revealed by Electricity and Energy Minister Kgosientsho Ramokgopa over the weekend during a South African Local Government Association (SALGA) indaba attended by local mayors, municipal officials, councillors, and Limpopo Premier Dr Phophi Ramathuba. Ramokgopa warned that the escalating debt — part of the national municipal debt to Eskom, which now totals R78 billion — poses a major threat to the stability of South Africa's electricity supply and the financial viability of the power utility. Of the 27 municipalities in Limpopo, those in the Waterberg District – namely Modimolle/Mookgophong, Thabazimbi, and Bela Bela – are the worst offenders. While these municipalities have been approved for debt relief through the National Treasury, only Bela Bela has met the necessary conditions, having signed an active partnering service level agreement with Eskom. 'A similar agreement was signed by the previous Thabazimbi council, but it was never implemented,' said Ramokgopa. 'We have also received commitments from Musina, Makhado, and Mogalakwena municipalities to improve payment compliance, but action must follow those words.' Ramokgopa placed much of the blame for persistent power supply challenges in Limpopo on illegal activities such as meter bypassing, infrastructure vandalism, and unauthorised electricity connections, particularly in densely populated urban and rural communities.
The Citizen
13-06-2025
- Business
- The Citizen
ELM cuts wasteful spending, earns praise for financial reforms
Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
12-06-2025
- Business
- The Citizen
ELM bags third runner up from the SALGA AND CIGFARO municipal awards
ELM bags third runner up from the SALGA AND CIGFARO municipal awards VANDERBIJLPARK – Emfuleni Local Municipality (ELM) won a third-place runner-up award for managing to reduce the 2023/24 financial year's unauthorised, Irregular, Fruitless, and Wasteful Expenditure (UIFW) by 44%. The South African Local Government Association (SALGA) 3rd Annual Municipal Audit Awards were held in Johannesburg on May 30. The award signifies tireless work done by ELM towards attaining a clean audit by reducing financial transactions that violate the Municipal Finance Management Act (MFMA) and other procurement legislation. According to ELM spokesperson Makhosonke Sangweni, for the municipality, the award is not just an accolade, but an encouragement to improve financial management for progressive audit outcomes and service delivery. Reflecting on winning the award, Municipal Manager April Ntuli said ELM is proud to be considered part of municipalities that are committed to financial sustainability and the provision of improved services for consumers. 'I would like to thank the council and its committee for taking a bold decision to deal with all historical UIFW that was accumulating yearly and hampering service delivery for the people of Emfuleni. 'Notwithstanding the financial situation confronting the municipality regarding the high rate of unemployment and the impact it has on payment for services and the overall service delivery, ELM remains committed to being transparent and prudent on how it spends money meant for service delivery programs,' said Ntuli. In a statement, Sangweni said the municipality is aware that the community has lost trust in us and will only be happy when the award is supported by an improved commitment to service delivery. 'Part of the service delivery challenges we have is that of fleet; to mitigate this, the municipality has embarked on a project to improve fleet availability through leasing. This will assist with securing a significantly higher number of vehicles as opposed to outright purchasing,' he said. 'To ensure that the SALGA award is not in vain and that we perform better in the next financial year, the municipality is currently rolling out the installation of electricity meters and concluding the debt rehabilitation campaign in high hopes of improving revenue collection. The municipality is calling on all account holders to pay for services to improve the quality of life in Emfuleni,' he added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
eNCA
11-06-2025
- Business
- eNCA
KZN municipal debt tops R61-billion
DURBAN - South Africa's local municipalities are in trouble and the numbers are staggering. 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.
