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FOR WRITTEN REPLY
NATIONAL ASSEMBLY
PARLIAMENTARY QUESTION NO 183
Mr P F Smith (IFP) to ask the Minister for Cooperative Governance and
Traditional Affairs: (IED)
With reference to those parts of the country where Eskom is not
responsible for electricity distribution, what is (a) the status of
municipalitiesâ investment in (i) physical and (ii) human capital in
their electricity business, with specific reference to (aa) network
maintenance and refurbishment and (bb) investment in people, and (b)
being done to ensure municipalities invest on an ongoing basis to
ensure a reliable electricity supply? NW192E
Reply:
a) The Country is wall-to-wall licenced, hence where Eskom is not
the licence holder, a municipality is licenced to distribute
electricity. These licenses are issued by NERSA, and is in line
with the powers been given to them according to the Electricity
Act.
(aa) (i)(ii), (bb) and (b) A licenced entity, either it be Eskom or a
Municipality has to manage the electricity business in a manner
that it is sustainable, from a human capital, maintenance and
refurbishment of assets or revenue management point of view. As
part of the regulation of these entities, they have to obtain
approval from NERSA for any changes in tariffs or tariff
structures on an annual basis, to ensure that the correct
revenue stream is obtained to ensure that the electricity
business can be managed in a sustainable manner.