Lekwa's electrical issues in the spotlight
Though the situation closely resembles what residents have come to know as 'Lekwa-shedding,' the municipality insists this is not the case.
DA councillor Alberto Franco explained that the municipality is no longer legally allowed to implement Lekwa-shedding. However, it is still within its rights to manage the electricity load.
'The municipality is currently implementing load-reduction due to the high electricity usage that typically comes with winter,' said Franco.
The winter electricity load is high due to the use of appliances such as heaters, which puts pressure on an already strained system.
Franco said the current electricity load cannot exceed 60 MVA, but for the town to function smoothly, it needs at least 80 to 100 MVA.
He is not optimistic that the electricity limit will be raised any time soon, as Lekwa owes Eskom R1.9b and Eskom is already struggling to meet the town's power demand.
ALSO CHECK: Recreational spaces in Standerton are falling apart
'The current SCADA system has been implemented to avoid the entire town tripping all at once. The load-reduction is meant to protect the system from overloading,' said Franco.
He reiterated that the town is not experiencing Lekwa-shedding, but rather load management – a form of load-shedding used to manage the power supply more sustainably.
'During winter, the municipality will rotate all areas for load-reduction to ensure there is no prejudice,' said Franco.
He added that there would be no load-reduction during summer, when the town's maximum usage does not exceed 45 MVA. Franco acknowledged the severe impact of the power issues on the local economy.
'When there is no electricity, no development can take place and the entire system stagnates,' he said.
He added that electricity, waste, and water challenges all contribute to economic decline.
'It is an impediment to development,' said Franco.
How electrical interruptions affect businesses
Electricity interruptions are not only inconveniencing households but are also severely impacting businesses. Umnandi Catering is one of many enterprises affected by the ongoing power outages. The business provides accommodation and three meals a day to contractors and relies heavily on a stable power supply to operate effectively.
According to Juan Nortjé, HR and control manager at Umnandi Catering, their electricity consumption has tripled since load management was introduced.
'Companies are penalised on peak units, causing an absurd levy when the electricity comes back on,' Nortjé explained.
In an environment where several kitchen appliances need to run continuously, these supply disruptions have made daily operations increasingly difficult. When the power is restored, the business is charged higher tariffs due to peak electricity usage.
Nortjé said they have approached the municipality for answers but have yet to receive a clear explanation.
The business operates year-round, housing contractors and providing essential services. Frequent electricity outages have made it harder to meet clients' expectations.
'We have to start generators whenever the electricity goes off, which adds significantly to our operational costs,' he said.
Businesses like Umnandi Catering, which require a constant and reliable electricity supply, are bearing the brunt of these interruptions, with rising costs placing increased strain on their sustainability.
Electricity theft is a crime
Another major factor contributing to Lekwa's ongoing load-reduction efforts is criminal activity—particularly bridged meters, electricity theft, and ghost vendors.
'Ghost vendors are illegal and criminal in the same way that electricity theft is,' said DA councillor Alberto Franco.
He explained that ghost vendors cause significant revenue losses for the municipality, making it even harder to settle its debt with Eskom.
Currently, Lekwa has around 20 000 prepaid meters installed, yet only about 8 000 households legally purchase electricity.
'More than 60% of residents are either buying from ghost vendors or have bridged meters,' said Franco.
ALSO CHECK: Youth empowerment gala to tackle issues faced by Lekwa's youth
To help combat this, the municipality is working on a programme to install floodlights across the town. These lights are expected to be more maintenance-friendly and will help protect infrastructure by deterring theft and vandalism.
Efforts are also underway to remove illegal connections.
'They've already begun ripping out illegal connections in several areas and have started inspecting businesses for bridged meters,' said Franco.
He noted that the best-paying areas in Lekwa include Wards 4, 10, 8, and parts of Ward 3.
'To weed out non-paying residents, the municipality should consider rewarding paying customers with rebates,' Franco suggested.
He acknowledged that high unemployment and limited disposable income make compliance difficult, but said that a culture of payment could be encouraged by offering discounts to consistent payers.
Franco urged residents to report faults, address problems as they arise, and approach the municipality to negotiate payment agreements.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
7 hours ago
- IOL News
Strategies for South African SMEs to cope with Trump's tariff challenges
With the implementation of Trump's 30% tariffs, South African SMEs face significant challenges that threaten their margins. Experts urge local businesses to act swiftly and strategically to adapt to an uncertain economic landscape. Image: File With US President Donald Trump's 30% tariffs having come into effect, South African small and medium-sized enterprises (SMEs) have been bracing for the knock-on impact across supply chains, input costs, and consumer spending. While global headlines focused on Washington, the EU, Canada, and Beijing, experts said local businesses needed to act quickly to protect margins and plan for uncertainty. Thomas McKinnon, chief growth officer at SME services provider Lula, said businesses had to be proactive. "If your product offered exceptional quality, niche appeal, or a distinct competitive advantage, demand might have persisted even with higher tariffs," said McKinnon. From a cash flow perspective, every cent counts. 'Now is the time to look for any big or small ways in which you can streamline your operations, reduce waste, and negotiate better terms with suppliers. The tariffs will have a knock-on effect that we will more than likely see across the board and SMEs need to be ready and prepared,' said McKinnon. Consumers were already feeling the pinch, especially after Eskom's latest electricity tariff hike. McKinnon said businesses might have had to absorb some of the costs to stay competitive, making internal cost-cutting vital. He also urged SMEs to review their forecasts and cash flow closely. "Consider short-term funding options to bridge any potential cash flow gaps during this transition period,' McKinnon said. "Having agile financial solutions in place can provide a crucial buffer as SMEs adapt to the new economic landscape,' he added. Cornelius Coetzee, South Africa country director at cross-border payments company Verto, agreed that a longer-term view was essential. 'This moment necessitated a strategic, long-term vision rather than short-sighted, defensive measures,' said Coetzee. 'The potential implementation of broad tariffs would represent a significant misstep, carrying the considerable risk of triggering a detrimental chain reaction,' he said. Coetzee added that among the spillover effects were increased costs for consumers, severe disruptions to manufacturing supply chains, and a substantial blow to the country's vital export industries. 'Such a policy would, in effect, penalize the very innovation and efficiency that are essential for South Africa's economic prosperity,' he said. Goitseona Raseroka, supply chain lead for Accenture Africa, warned that global trade shifts were already reaching South Africa. 'Tariffs are climbing again, fast, and hard. Our research shows that the average US tariff rate has risen from around 2.4% at the end of 2024 to 29% today. That is the highest level in over a century," she said. While most of the attention was on the US and China, the impact is widespread. 'When tariffs rise in the United States or Europe, the cost of goods increases across supply chains. Components become more expensive. Shipping becomes unpredictable. And somewhere down the line, the cost shows up on South African shelves,' said Raseroka. Accenture estimated that for American households, this tariff shock could add the equivalent of R40 000 per year in extra costs. 'Now imagine what that kind of inflationary pressure could mean for South African consumers,' Raseroka said. Raseroka added the unpredictability was more troubling than the costs. 'These tariffs are not being introduced in a slow and considered manner. They arrive fast, they shift quickly, and they often come with little warning. One month a sector is stable, the next it is caught in a trade dispute,' she said. 'The smart move is not to panic, but to prepare,' said Raseroka. 'Resilience has become the new currency in global trade. It is not about reacting to the next tariff hike, it is about building the kind of systems and strategies that can adapt to multiple futures. We need to move from hoping things will settle to actively preparing for the fact that they might not,' she added. Raseroka said SMEs needed to know their margins, diversify suppliers, consider local sourcing where possible, invest in digital tools for real-time visibility, and train teams in scenario modelling. 'South African businesses have navigated through currency shocks, power cuts, policy uncertainty and commodity price swings. We are used to volatility. What we need now is to take that resilience and turn it into a forward-looking strength,' Raseroka said. IOL
TimesLIVE
11 hours ago
- TimesLIVE
Gauteng schools nearly debt-free, R2.8bn allocated to ease overcrowding
The Gauteng education department has settled almost all municipal debts owed by schools and set aside R2.8bn to tackle overcrowding in state schools in the province. The department said it paid R426.27m or 99.95% of the R426.45m owed to municipalities and Eskom by schools without section 21(1)(d) functions by the end of June. The outstanding balance of R175,853.61, which represents 0.05% of the debt, 'was due to a delay resulting from updates to standard chart of accounts, a reform implemented by the provincial Treasury to improve public financial management systems'. The department confirmed the remaining amount would be paid between July 25 and August 8, fully honouring its commitment to settle school debts by the end of March. 'As the department, we remain committed to ensuring sound financial governance, transparency and service continuity in state schools,' said education MEC Matome Chiloane. Schools in Gauteng receive annual allocations in line with the amended national norms and standards for school funding. School governing bodies (SGBs) are supported through circulars and workshops to manage the funds responsibly. The department retains direct control over 40 schools that have not been granted financial management responsibilities. By June 30 those schools owed a combined R105,391.24 in municipal debt. The department confirmed none of these schools experienced any water or electricity disconnections and continues to monitor and manage service payments on their behalf. To address overcrowding, the department has allocated R2.8bn for infrastructure projects in the 2025/2026 financial year. Of this, R1.489bn will go towards building new and replacement schools, R615m for upgrades and additions including mobile classrooms, R166m for refurbishments and R476m for maintenance. The department said its strategy includes brick and mortar classroom projects, new school construction on available land and deploying mobile classrooms for immediate relief. The department also clarified that 'mobile classrooms are procured directly and not through monthly lease agreements, ensuring cost-effectiveness'. A public-private partnership model is being considered to fast-track delivery in high-demand areas. Under this model, 'private sector partners would finance, design, build and potentially operate or maintain state schools for a defined period, with the department amortising payments over time.' Chiloane urged parents, communities and SGBs to continue working with the department 'to deliver quality learning environments across Gauteng'.
The Citizen
13 hours ago
- The Citizen
Homeowners caught in solar registration grey zone
While City Power encourages voluntary solar registration, homeowners remain confused as Eskom and municipalities apply different rules. There is still uncertainty surrounding registration of home solar systems, with either Eskom or municipalities, as Johannesburg's City Power confirms its meter readers are scouting for the locations of such systems. Randpark residents said this week that meter readers had been asking about solar power systems and had been seen photographing rooftop solar panels on houses. City Power begins checking solar systems City Power spokesperson Isaac Mangena said City Power was in the process of registering small-scale embedded generation systems such as rooftop solar photo-voltaic installations. 'While registration is not yet being enforced, customers are strongly encouraged to begin the process voluntarily to ensure compliance with National Energy Regulator of SA (Nersa) regulations,' he said. Mangena said meter readers visiting households were conducting standard meter audits that may include noting the presence of rooftop solar panels or related infrastructure. 'This is part of routine data collection,' he said. Mangena said City Power was developing measures to identify unregistered systems in the future, including the possible use of satellite and drone-based detection, he said. 'There is currently no official or forced registration drive underway,' he said. An off-grid does not have a connection that ties the generator to the Eskom electricity distribution network. This type of configuration does not need authorisation from Eskom or Nersa registration. Information and graphics: Eskom 'Grid safety' Mangena said Nersa's licensing threshold was 100kVA, which means systems below this capacity are exempt from requiring a generation licence. However, this does not exempt them from the obligation to register with the distributor, in this case, City Power. 'The focus on smaller suburban setups is aligned with national guidelines and City Power's obligation to maintain grid safety, stability and visibility of all systems connected to its network. ALSO READ: South Africa gets R8.4 billion loan to help fix and improve its energy sector 'Even small systems can pose risks such as back feeding, phase imbalances or grid disturbances if not registered and properly integrated,' he said. Mangena said about 1 100 systems have been voluntarily registered. 'City Power is working to simplify the process. Registration requires customers to submit documentation, including a certificate of compliance, single-line diagram and a completed electricity supply application form. 'Once the installation is inspected and approved, the customer may qualify for a smart bi-directional meter, which will allow for both consumption and feedback tracking,' he said. Generation systems already connected to the grid can take advantage of battery storage. This means being able to store solar energy generated during the day and using it at night. Information and graphics: Eskom Eskom and City Power have different registration routes Eskom launched a campaign in April to help residential owners of small-scale embedded generation systems, including photovoltaic installation systems, comply with the National Energy Regulator of South Africa (Nersa) regulations. These regulations require all owners in Eskom-supplied areas to register with Eskom. Eskom has, however, referred owners of solar systems in non-Eskom-supplied areas to their local municipality. Eskom's registration demands rejected While Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenhage said Outa would challenge Eskom's decision, AfriForum has added fuel to the fire and maintained that Eskom's registration requirements for grid-tied solar power systems have no legal basis. AfriForum local government affairs manager Morné Mostert said Eskom could not threaten or force people to register their systems through statutory requirements, nor fine them. Mostert added that Eskom wants its hands on people's data – potentially for solar tariffs in the future. AfriForum advisor for local government affairs Deidrè Steffens said what frustrates people is that Eskom's underperformance over the past few years has forced people to install solar panels, especially industries and farmers, who had to do it for survival. ALSO READ: Are municipalities failing — or are residents just unable to pay? Why many are turning to off-grid living In this generator network configuration, any surplus generated energy may be exported into the type of grid-tied generator connection requires Eskom authorisation and registration with Eskom or Nersa. Information and graphics: Eskom Concerns over high costs and engineer bottlenecks 'It has already cost them a lot of money. Now they will have to pay an extra R20 000 to R50 000 for the engineer's certificate,' she said. Steffens said it didn't make sense for an engineer to inspect a small solar system, adding that Eskom's requirement that small-scale embedded generation systems customers get an electrical engineer registered with the Engineering Council of SA to sign off on the system was not a prescribed requirement. 'The enforceable National Rational Standards say nothing about the requirement for engineer sign-off; it primarily speaks of an accredited technician who must sign off on the system.' Steffens warned that it could create a bottleneck because only a handful of electrical engineers are available across the country to inspect installations. She said the requirement would cause a big bottleneck in registrations. More confusion as municipalities apply own rules Association for Renewable Energy Practitioners president Carel Ballack said each municipality has its own rules. 'There are 177 municipalities that can sell power. Eskom is just one of the utilities that have its own rules for connection,' he said. Ballack said it depended on the municipality and on how thoroughly an installation has been done. 'If you were to register through Eskom, that will be about R2 500 for the administration fee and then Eskom will send someone to look at the infrastructure. They'll probably change the meter. That's R6 000 and upwards. 'Then you must have other compliances in place. If you don't have an engineer sign-off, that can set you back R4 500 for the line diagrams and sign-off.' NOW READ: Identifying the bugs in SA's long-promised infrastructure boom
