The City of Tshwane is terminating its smart metering contract with the service provider, PEU with immediate effect.

According to a statement made by the City on Tuesday, the termination decision is largely based on the negative financial and economic impact of the project on the City.

The original intent of the Security of Revenue Project, colloquially known as the SoRP, was a bold gesture to speedily install smart meters for all consumers in Tshwane, both commercial and residential.

The roll-out of the smart meters commenced in October 2013 when these meters were installed at large power users (LPUs); small power users (SMUs) joined late in 2014.

To date, 6 572 and 6 348 smart meters were installed at LPUs and SPUs, respectively.

Since the roll-out of the project the City has paid the service provider R830 290 787 million in terms of the master services agreement (MSA) concluded between the two parties.

However Afrisake’s court application in 2013 to interdict and review the SoRP impeded the speedy roll-out of the meters, undermined the benefits for the City and rendered the project financially and economically unsustainable.

Since then, the City has engaged with Afrisake and PEU in an attempt to find an amicable solution to the problem.

To date, the engagements have not yielded positive results, thus leaving the City with little choice but to issue a formal termination notice. The review application brought by Afrisake is however still pending in the courts.

The City called an urgent meeting on Tuesday with the service provider, PEU, to discuss the terms of the termination and to ensure that there is continuity of service to our customers.

According to the city no further roll-out of the smart meters is anticipated beyond this point.