Municipalities crippled by inept and failing Eskom’s stranglehold on power supply

In the verdant valleys and bustling towns of our municipality, an invisible force undermines the very fabric of our local governance. This force is not nature nor is it the global economy; it is Eskom, South Africa’s state-owned power utility.

As the mayor of the uMngeni Municipality, I witness first hand the challenges our local government faces, exacerbated by Eskom’s monopolistic grip on electricity generation and distribution. 

The consequences of this stranglehold are far-reaching, impacting our ability to generate income, maintain infrastructure and serve our communities effectively. 

Municipalities across South Africa are haemorrhaging billions of rands, a direct result of our incapacitation in generating income from areas supplied electricity by Eskom.

This enforced reliance on a single supplier stifles competition and innovation, leaving us at the mercy of Eskom’s pricing structures and operational inefficiencies. 

The monopoly held by Eskom not only contravenes the spirit of economic freedom, but also places an unsustainable financial burden on municipalities. 

The insidious effects of prolonged and persistent load shedding have pushed many businesses and households towards alternative energy sources, such as solar power. While this shift may offer a semblance of relief from the erratic power supply, it exacerbates the fiscal woes of local governments.

The decrease in income from electricity sales is stark, and the increasing cost of living has propelled lower-income households towards illegal connections, further diminishing our revenue streams. 

These households, unable to afford solar installations, find themselves trapped in a cycle of energy poverty and desperation.

Compounding these challenges is our inability to enforce credit control effectively where Eskom dominates electricity supply. 

Municipalities powerless