Residents of Bethal and eMzinoni are still struggling without power.
The community has in the meantime raised questions about Enpower Machite and the role of the Govan Mbeki Municipality.
Ridge Times respectively asked the Mr Nhlakanipho Zuma, executive mayor, and Ms Tess Maroos, spokesman for Enpower Machite, questions about the residents’ concerns.
GMM mayor, Mr Nhlanipho Zuma:
Q: Why is Bethal’s electricity supply still a huge headache?
A: There is development that is happening. We cannot restrict development on the basis that we had limitations before.
It is not the issue of capacity that is limiting residents, but the issues of infrastructure.
The Notified Maximum Demand (NMD) capacity from Eskom is sufficient.
Q: What is your relationship with Enpower Machite?
A: It is the competency of the local municipality to supply electricity. We are the only people licensed to operate and distribute electricity to consumers.
Because of GMM’s financial incapacity to improve infrastructure, a decision was made by council to appoint Gert Sibande District Municipality as an implementing agent.
GMM did not appoint Enpower Machite JV, we appointed GSDM as our implementing agent.
We did consul with the community to inform them of what exactly will transpire and allowed their input.
GSDM decided to appoint a service provider to do what GMM requested them to do on the infrastructure.
We do not have an agreement with Enpower Machite JV, we only have an agreement with GSDM.
Q: What was the agreement between GMM, Gert Sibande District Municipality and Enpower Machite?
A: GMM is still ensuring they are still transfusing as much authority to the correct centers so that there is not confusion in terms of what should be done by who.
We have not sold our responsibility or taken our responsibility away.
We still have employees in the electrical field who are responsible to ensure that the network is still functional and performing in a rate and manor in which it is supposed to perform.
The transition of operation and maintenance will be continuously upgraded until there is a synergised operation between GMM and the implementing agent and the service provider.
Q: Do you keep the community up to date?
A: It is crucial for GMM to continuously update residents of Bethal and eMzinoni on what we have been doing about the electricity.
There are weekly engagements between ourselves, GSDM and an established committee by the district which deals with monitoring, led by the MMC of monitoring and evaluation at the district municipality. This particular committee is insuring the necessary legal documents are in place so that we can work simultaneously between ourselves and the relevant stakeholders.
GMM is still in a process of transition and in the particular process there will be glitches which are being recognised and eventually will be ironed out.
We request that people pay for their services so that the process can accelerate.
Enpower Machite media liaison, Ms Tess Maroos:
Q: Enpower Machite has already spend more than R10 million. Have you been paid yet?
A: We have invested seed capital in attending to urgent operations, maintenance, and refurbishment issues of the electricity network.
No, we have not been paid since we started in February and are therefore exposed. We are thus unable to continue to offer services to improve the quality of supply due to the lack of payment of invoices.
The revenue from the electricity business is to be ringfenced as per the Council resolution of A037/06/2020 and, all the costs associated to run the electricity business, will be paid from the ringfenced account.
Enpower Machite JV will be paid from the money collected and banked.
The ringfenced revenue will have to service the Eskom monthly bulk current account, maintenance, and refurbishment activities, as well as settle our monthly invoices.
Q: What is the nexus between the owner of Machite, GSDM and GMM
A: There is no special connection between us, GSDM and GMM. The directors of Enpower Machite are seasoned professionals who are well-known in the industry.
Both directors are female electrical engineers who are well-positioned in the ESI industry. The Enpower Machite JV project director used to be a managing director (energy) of Bigen Africa, a company that was appointed by GMM to raise money and implement the eMbalenhle project.
Our team of professionals are well seasoned and part of the few dedicated South African professional positioned to solve the socio-economic development challenges of the country.
Q: Machite is replacing current meters with the latest smart meters. Are you refusing users the choice between prepaid and post-paid?
A: No, we did not refuse any customer to remain on a post-paid meter. We did however explain to customers the advantage of being on a prepaid meter.
Q: Why are residents and businesses being force to use the new smart meters?
A: The bylaws allow for a municipality to decide which type of technology is used. The reason for the meter changes depends on the back office being used and if the existing meters can communicate with the back office. Consumers will be given a choice to be billed monthly or make use of pre-paid, however this will depend if accounts are paid up to date. If they fall into arrears they will be converted to prepaid.
Q: As many consumers are reverting to solar power, who will be left to pay Machite once these consumers are off the grid?
A:This is not a new phenomenon in South Africa and the legislation allows for power generation for self-consumption.
The existing tariffs in Bethal do allow for the procurement of energy from prosumers. In the future electricity tariff structures will be adapted to cater for this.
Q: Will there be increases in levies to make up for the loss?
A: No. Tariffs are regulated by NERSA and only tariffs approved by NERSA may be implemented.
Q: What is being done about the current supply and illegal connections?
A: Enpower Machite aims to deploy systems that will assist the municipality in protecting the revenue and the assets to eliminate Illegal connections.
We have also embarked on a project to look at the electrification master plan and apply for grant funding to DMRE to electrify the deserving poor community with free basic electricity.
We are getting visibility on the network with the implementation of the SCADA system to optimise the current supply.
Q: What other challenges do you face?
A: We are currently focusing on meter installations to increase revenue and curb the improper use of electricity by non-payers.
This is a multifaceted project – both GSDM and GMM have committed to support the project going forward for financial sustainability.
The users of electricity need to pay for the services.
