Municipal Energy Scenarios
The National Treasury and various institutions have so far held three workshops to discuss a plausible energy future for South Africa.
The aim of these workshops is to develop energy scenarios for municipal energy decisions. South African metropolitan municipalities, the Presidential Climate Commission, the South African Local Government Association, the Public Affairs Research Institute, the National Treasury Cities Support Programme and other partners will support the process.
During the workshop, one of the key issues highlighted was whether government can generate growth through efficient spending. It is important that municipalities be able to improve the use of grants from government funds, or can municipalities change their electricity tariffs to address inefficiencies? Do municipalities rely on surcharges to generate revenue from municipal services?
Some measures required by municipalities and the government are to find solutions for future energy security by introducing cost-reflective tariff structures. Treasury has to fund municipalities more efficiently and municipalities need to develop a better understanding of the costs of providing basic electricity services.
There seems to be some disconnect between non-governmental organisations and consultants on how income is generated and, in certain circumstances, how municipal revenue streams work. The continued installation of solar by companies, the decline in paying customers and the amount of electricity purchased is a cause for concern. And on the other hand, there have been calls to increase subsidies for low-income households.
The economy and business’ demands for affordable, reliable baseload to strengthen our manufacturing and industry are seen as hindering the implementation of green energy initiatives. It is important that the government strengthen the coherence between energy supply, industrial policy and job security. MCCI believes that we need to strengthen the local voice of business. Members interested in attending the next meeting with Anna-Marth Ott, please email ceo@middelburginfo.com.