Municipalities have the executive authority and right to administer electricity reticulation according to the Constitution of the Republic of South Africa. The electricity business in the municipalities is not necessarily ring-fenced in all cases and it generates between 40% and 60% of the municipal revenue.
In some cases the electricity service is used as a credit control measure for all services that the municipality offers. The surplus from the electricity business, which is used to cross-subsidies other services within the municipality, needs to be kept at reasonable levels. Even though NERSA is mandated to regulate the electricity reticulation of municipalities there are additional surcharges municipalities can impose that are not regulated by NERSA.
Presented by Thembani Bukula, Regulator Member, National Energy Regulator of South Africa (NERSA)
Thembani Bukula is the Regulator Member primarily responsible for electricity regulation at the National Energy Regulator of South Africa (NERSA). He obtained his B.Sc. Engineering from the University of Natal and a post graduate diploma in Engineering Business Management from Warwick University. He started his career at Yelland Engineering, then joined M&E Design and thereafter joined Eskom in 1994 as an engineer responsible for the commissioning of the extra High Voltage substations in the KwaZulu-Natal region. Between 1995 and 1997 he was a test engineer at KEMA-The Netherlands. He has been the Managing Director of various companies including the NETFA, SABS – Testing and Conformity Services and National Data Systems between 2001 and 2006.