Smart meter project improves Govan Mbeki Municipality’s finances
Eskom and Rand Water debt is a little less.
The Executive Mayor of Govan Mbeki Municipality, Nhlakanipho Zuma, reported to the council that in April 2025, the municipality paid R17m towards its Eskom account, although R5.68b remains outstanding.
Similarly, the municipality paid R24.99m to Rand Water, with an outstanding balance of R824.24m.
Zuma highlighted the municipality’s smart electricity meter installation project as a significant step towards improving revenue collection and reducing electricity losses.
“The project has a multiplier effect on energy revenue, with a significant reduction in distribution losses,” said Zuma.
At the start of the project, the municipality experienced energy losses as high as 75.76% in July 2021. By April 2025, this figure had improved significantly, with the lowest recorded monthly loss being 36.82%.
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The total yearly energy loss now stands at 49.60%, representing an 8.96% improvement from the previous financial year.
Despite the encouraging progress, Zuma acknowledged the challenges that threaten the successful completion of the project.
The municipality’s key challenges and mitigation strategies include its customers’ resistance to meter installation, tampering with newly installed prepaid meters, disruptions from community and business forums, a limited budget, and infrastructure limitations.
In some instances, appointed service providers were unable to continue working due to demands for subcontracting from local forums.
The municipality works closely with councillors, community leaders, and law enforcement to address this issue, and encourages service providers to employ local labourers and subcontractors.
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To combat all these challenges, the municipality’s communications department, in collaboration with ward councillors and community leaders, educates residents about the benefits of the smart meter project.
The project team is conducting inspections in affected areas and issuing fines to customers who tamper with meters. Certain areas require infrastructure upgrades, such as installing vandal-proof boxes and reorganising cables.
These requirements have pushed the average cost per meter installation to approximately R5 500. Despite the hurdles, Zuma emphasised that the project has already had a positive impact on municipal revenue, which strengthens the case for securing additional funding in future budgets.
“The project has proven to be successful and has a positive effect on the municipality’s revenue position, which should help in securing additional budget funding in the future,” said Zuma.
