Load-shedding crippling municipalities, businesses

LOAD-shedding is not only crippling the economy and plunging consumers deeper into debt, it is increasing the costs of keeping critical municipal services running.

If not urgently addressed, this will result in a total collapse of the municipal fiscal framework.

ALSO READ: R205m set aside to address Mtubatuba water crisis

This is according to the South Africa Local Government Association (Salga) in KZN, which held a media briefing on Friday to discuss the continued threats posed by the current electricity crisis.

“Salga KZN notes with deep concern the impact of load-shedding on other municipal services such as water and sanitation,” said Salga KZN Chairperson Thami Ntuli.

“Municipalities spend exorbitant amounts on diesel to make sure wastewater is processed even during load-shedding to prevent spillage into our oceans and rivers.

“Water supply, especially in KZN, necessitates high-lift pumping systems over great distances.”
He said the persistent power outages are placing councils and businesses ‘at the mercy of generators’, which come at a high cost.

“Diesel generators are not designed to run for extended hours on end and thus suffer breakdowns frequently. Above all, generating emergency, localised electricity supply is a severe cost to Salga members,” said Ntuli.
He further questioned the expectation of consumers investing in solar and diesel when ‘almost every other cost that is unavoidable is increasing’.

“Local businesses need ways to keep going as well. As things stand, not all businesses can buy diesel to continue when load-shedding hits. Yet they need to keep running to keep up with rent, bonds, employee costs etc.

“Households are constrained by rising costs that trickle down from the tariffs into higher school fees, high home loans and car repayment interest costs,” said Ntuli.

This in turn affects revenue collection as municipalities ‘cannot pay Eskom and water boards if household income is constrained’.

“Municipalities can only collect if the household can afford to live within their means,” said Ntuli.

As part of efforts to engage and propose remedies, Salga said municipal risk managers will be convening on 24 – 25 May to develop a risk assessment report which will be presented to mayors and managers on 12 – 13 July at a provincial members assembly.

HAVE YOUR SAY