The South African Local Government Association (Salga) says municipalities are losing billions of rand in revenue due to electricity theft. The organisation has been unable to quantify the exact figure, but it says businesses in some municipalities are on the brink of collapse due to the damage.

Salga, the South African Chamber of Mines and other stakeholders are making their submissions before parliament on the possible restructuring of the Electricity Distribution Industry.

The Association argues that the coordination of municipal participation in the anti-electricity theft campaign should be improved. It has also committed itself to playing a part in the process.

Salga executive director, Mthobeli Kolisa says: “On our side as Salga we need to coordinate and support municipalities to act and report their action in respect of electricity theft and review their by-laws to have more stringent penalties against electricity theft.”

The Chamber of Mines says it needs reliable electricity supply for the viability of its industry. It has also lost out on investments due to uncertainty about the country’s mining policy and the unreliability of the electricity supply.

The Chamber of Mines’ Dick Kruger says: “There’s great concern about the future of electricity distribution industry. This has resulted in insufficient investment in new distribution infrastructure and the maintenance of existing infrastructure.”

All stakeholders appealed to government to decide on sustainable models for electricity distribution industry without further delay, to ensure investors about the sustainability of their investments in the country’s economy.

Source: SABC