Abrupt end to smart electricity meters
The contract between the Tshwane metro and PEU (Pty) Ltd for the installation of smart prepaid electricity meters was cancelled with immediate effect on Tuesday, halting the roll out of the pre-paid meters by the municipality.
The roll-out of smart prepaid electricity meters by the Tshwane metro has been halted.
The municipality announced on Tuesday it had terminated the controversial multi-billion rand metering contract with the service provider PEU with immediate effect.
The termination decision was largely based on the negative financial and economic impact of the project on the city, Tshwane spokesperson Selby Bokaba said in a statement.
Since signing the contract with the metro almost two years ago, R830 290 787 had already been paid to PEU (Pty) Ltd by Tshwane, although only 12 920 of the planned 800 000 smart prepaid meters had been installed.
In a statement, a court application by AfriSake to interdict and review the Security of Revenue Project (SoRP) regarding the contract, was blamed for the failure of the speedy roll out of the meters and therefore the contract between Tshwane and PEU.
“The roll-out of the smart meters commenced in October 2013 with the Large Power Users (LPUs), while the roll out to the Small Power Users (SPUs) began late in 2014.
“However, like a spanner in the works, Afrisake’s court application in 2013 to interdict and review the SoRP had the effect of impeding the speedy roll-out of the smart prepaid meters, with the anticipated benefits to the city not being fully realised and the project becoming financially and economically unsustainable,” Bokaba said.
Since then, the metro had engaged with Afrisake and PEU in an attempt to find an amicable solution to the problem, he added.
Bokaba said the original intent of the SoRP had been a bold gesture to speedily install smart prepaid meters to all citizens within Tshwane, both commercial and residential.
The objectives of the project were, among others, to improve revenue collection by a cash upfront basis, to improve the collection efficiency of electricity charges as well as other services and to reduce energy theft through meter by-passing as the smart meters had tamper alarms.
To date, 6 572 smart meters were installed at LPUs and 6 348 at SPUs.
However, Bokaba said, the engagements had up to now not yielded positive results, thus leaving the municipality with little choice but to issue a formal notice to terminate.
“The review application brought by Afrisake is, however, still pending in the courts,” he said.
According to Bokaba, the metro on Tuesday called an urgent meeting with PEU to discuss the terms and termination and to ensure that there was continuity of service to metro customers.
“No further roll-out of the smart prepaid meters is anticipated beyond this point,” Bokaba said.
“The city will endeavour to ensure that there is no interruption to the service as a result of the termination of the smart prepaid metering contract,” he concluded.
Also read: Tshwane prepaid customers can buy electricity again
Imminent switch of households to Smart Prepaid Electricity
Tshwane metro applies for electric tariff increase
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