Questions are once again being raised over JB Marks Local Municipality’s compliance with its electricity distribution licence after local attorney and Democratic Alliance (DA) caucus leader in the JB Marks Municipal Council, Hans-Jurie Moolman renewed his complaint to the National Energy Regulator of South Africa (NERSA), arguing that the regulator failed to act on concerns first raised in 2024.

In correspondence addressed to NERSA officials Amanda Mtembu and Palesa Radebe, with a copy to NERSA CEO Advocate Nomalanga Sithole, Moolman referred to a complaint he lodged on 25 November 2024 regarding the municipality’s alleged non-compliance with its electricity distribution licence.

The latest letter follows recent intervention by the National Treasury after the municipality’s reported debt to Eskom reached R843.3 million. Treasury has since invoked Section 216(2) of the Constitution, read together with Section 38(1) of the Municipal Finance Management Act, resulting in financial measures against the municipality.

“The reason NERSA is withholding funds is the municipality’s outstanding R843.3 million debt to Eskom,” Moolman said.

Moolman argues that these developments confirm part of the concerns he previously raised with NERSA.

“We will accordingly appreciate to learn what measures NERSA will now be taking to ensure compliance with the provisions of the Electricity Regulation Act and the terms and conditions of the distribution licence,” Moolman said in his letter.

He further alleged that he and members of the JB Marks Municipal Council had been informed that the Eskom debt resulted from “a deliberate decision” not to comply with clauses 4.6 and 4.7 of the municipality’s electricity distribution licence. According to Moolman, the decision was allegedly taken by the municipal executive and not by the municipal council.

Moolman said his original complaint was intended as a preventative measure to protect residents from the consequences now facing the municipality.

“The reporting of the matter to NERSA was intended as a pre-emptive measure to prevent the severe prejudice that will now be caused to our local community. Regrettably, our complaint was not taken seriously at the time,” he said.

He has requested that NERSA provide feedback on the steps it intends taking to enforce compliance, saying the information is needed to inform the affected JB Marks community.

JB Marks Local Municipality has held a NERSA electricity distribution licence since March 2018, authorising it to operate and supply electricity within its licensed distribution area, including Potchefstroom, Ikageng, Promosa, Mohadin, Baillie Park, Ventersdorp and several surrounding areas.

The licence, issued under the Electricity Regulation Act, places several obligations on the municipality. These include maintaining separate financial records for its electricity distribution business, complying with NERSA-approved tariffs and pricing methodologies, submitting regulatory information to the energy regulator, operating according to prescribed quality standards and complying with all provisions of the Electricity Regulation Act.

The licence further provides that any contravention of its conditions may be dealt with in terms of Section 19 of the Electricity Regulation Act and may ultimately result in amendments to, or revocation of, the licence.

At the time of publication, NERSA had not yet responded to Moolman’s latest correspondence. The Herald also requested comment from JB Marks Local Municipality, which had not responded by the time of publication.