MUNICIPALITIES from across KZN, including eThekwini Municipality, came together to confront the escalating challenges posed by rising electricity costs and the sustainability of services. The municipalities met at a special two-day Electricity Cost-Reflective Tariff Summit at the Durban ICC on March 16 and 17

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The summit served as a platform for more than twenty municipalities, joined by energy specialists and key stakeholders, to collaboratively explore new tariff strategies. The event, organised by the KZN Department of Cooperative Governance and Traditional Affairs (COGTA) in partnership with the eThekwini Municipality’s Municipal Institute of Learning, focused on formulating electricity pricing models that aim to be both equitable and sustainable within a landscape marked by increasing financial and operational difficulties.

The eThekwini Municipality highlighted the multifaceted pressures faced by municipalities, including rising bulk electricity expenses, ageing infrastructure, and inefficiencies within electricity systems.

“These challenges are further compounded by ageing and unreliable infrastructure, increasing non‑technical losses, affordability challenges, and strict regulatory requirements, all of which threaten the sustainability of electricity delivery across the province,” read a statement from the municipality.

Benefits of the discussion

Professor Mpilo Ngubane, director of the eThekwini Municipal Academy, said the summit marked a significant moment in KwaZulu-Natal’s approach to managing electricity services.

“This collective effort opens the door to practical solutions that can stabilise electricity services, strengthen infrastructure, and improve revenue management,” he said.

Ngubane added that the summit set the foundation for building electricity systems that are fair, sustainable and responsive to real needs of communities.

Among the key themes discussed were creating tariff models grounded in a thorough understanding of cost contributors, strategies aimed at minimising both technical and non-technical losses and enhancing long-term planning efforts.

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These discussions targeted the goal of ensuring municipal electricity departments remain financially viable in the face of dynamic challenges.

KZN COGTA comment

Mpume Majola, the Monitoring and Evaluation Director at KZN COGTA, emphasised the delicate balance required between financial sustainability and maintaining affordability for residents.

“This summit was necessary to look at all factors influencing electricity costs and the tariffs that will be implemented versus affordability,” she said.

She added that the engagement should ensure that tariffs do not put more strain on communities while allowing municipalities to generate the revenue needed to deliver services.

“With high unemployment and socio‑economic pressures, municipalities must be capacitated to make balanced and sustainable decisions,” said Majola.

Looking ahead, this engagement sets the stage for ongoing dialogue and the rollout of concrete strategies designed to reinforce municipal electricity frameworks.

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