Govan Mbeki Municipality plans to open a coal-fired power station
Mayor Nhlakanipho Zuma says Eskom should be billed for the use of municipal land.
The Executive Mayor of Govan Mbeki Municipality (GMM), Nhlakanipho Zuma, announced that the municipality intends to establish its own coal-fired power station to stabilise electricity prices and secure energy supply.
Zuma made the announcement while addressing delegates during the Mpumalanga South African Local Government Association (SALGA) Members Assembly, held on 6 and 7 October at Graceland Hotel, Casino and Country Club in Secunda.
The two-day assembly focused on key issues affecting local government, including inadequate financial management, governance challenges, service delivery interventions, consequence management and discussions on the 2025/26 and 2026/27 financial year budgets and annual performance plans. Reports from governance structures and oversight bodies were also presented.
Zuma said many municipalities were concerned that independent power producers (IPPs) posed a threat to municipal revenue collection as electricity supply remains a major source of income.
“We are not against the Just Energy Transition, but we are saying the transition must truly be just. We acknowledge that coal causes emissions that harm the environment, but our economy still depends heavily on coal. Europe is already developed; we are still a developing continent,” said Zuma.
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He cautioned that allowing private entities to control power generation could leave municipalities vulnerable.
“We cannot allow a situation where one individual or company has the power to switch off electricity whenever they want. Municipalities must remain in charge of electricity supply and Eskom must stop working to collapse municipalities,” Zuma added.
Zuma said GMM plans to build a coal-fired power station aimed at stabilising prices and ensuring affordable access to electricity.
“We only need support from the provincial government, not investment, because we already have that. What we need is licensing. The challenge is that government has created too much red tape for those seeking coal-processing licences,” he said.
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He emphasised that municipalities cannot afford to lose electricity distribution, which is their primary revenue source.
“As a municipality, we are currently sitting at an 80–90% collection rate, but in areas where Eskom supplies electricity, such as Leandra, the collection rate drops to just 2%. We cannot be disturbed in our space. Those who control energy control the world. We will not accept the privatisation of water and electricity,” Zuma said.
He also argued that Eskom should pay municipalities for using land and infrastructure within their jurisdictions.
“Eskom has a lot of infrastructure, including substations and pylons, within our municipalities, yet they pay us nothing. We cannot use that land for anything else and we are not benefiting at all. Eskom charges us to access their infrastructure, but we should also charge them and other large businesses,” Zuma said.
He concluded by calling for equal electricity distribution, insisting that all industries operating within municipal boundaries should receive electricity directly from the municipality rather than from Eskom.
