The 2024/25 Auditor General’s (AG) report on Steve Tshwete Local Municipality highlighted a problem with how the municipality manages electricity losses. Considering the 2023/24 and recent reports, electricity theft increased by over 10%. 

In the 2023/24 report, the AG’s report stated that there was a loss of R114,15 million in electricity losses. That is equivalent to 14,5% of all electrical units distributed by STLM. The national treasury’s average electricity loss is 7–10%. 

The 2024/25 report stated that there was a loss of R181m from unpaid electricity invoices. That is equivalent to 24,3% of all electrical units distributed by STLM. Who is getting special treatment? As I understand it, if your property tax is not paid, you cannot buy electricity. 

That means the residents lost revenue that could pay for service delivery of R295,15m over two years. For MCCI, the substantial increase in electricity lost income raises a red flag.  

In a perfect world, where everyone pays for their electricity consumption, we could even see an inflation-related increase in electricity costs, not the 13% increase in 2025. The good citizens of STLM seem to be funding the loss of income caused by theft. How is the municipality planning to reduce these losses? How much of the unpaid electricity debt is government-related? Or are we paying an ‘electricity tax’ to keep the lights on at our government departments in STLM? 

Source: Municipality: Steve Tshwete Local Municipality | District: Nkangala | 2023-24 Consolidated report on local government audit outcomes | AGSA and Middelburg Observer.