Sameera Casmod | sameerac@radioislam.co.za
20 November 2024 | 11:00 CAT
2-minute read

The Midvaal local municipality (MLM) in the southern region of Gauteng is procuring a 20-year public-private partnership (PPP) electricity concession to manage its power supply.

The municipality, which serves Evaton, Meyerton, Randvaal, Suikerbosrand Nature Reserve, Vaal Marina, and Walkerville, says the need for a PPP arose because insufficient funds prevented it from maintaining the vast Midvaal electrical network. With load-shedding having severely affected the Midvaal economy and Eskom’s proposed 40% tariff hike in 2025, the plan to secure a PPP and reduce reliance on the public utility is a feasible solution.

Speaking to Radio Islam International, MMC for Engineering Counsellor Reginald Hubbard said that the partnership aims to secure a stable electricity supply, improve infrastructure, and reduce electricity rates.

“This [PPP] will also reduce the pressure from Midvaal to Eskom. With the energy in our network, this will lead to reduced rates,” Counsellor Hubbard said, adding that a PPP will enable the municipality to better maintain electricity infrastructure.

While MLM has largely been at the helm of its internal electricity network, a few areas are still controlled by Eskom. These areas have experienced challenges in the past, with Eskom having implemented load curtailment measures, which Hubbard described as more disruptive than load reduction and shedding.

The initiative does not signify a complete severance from Eskom but rather a shift towards greater efficiency and innovation through private-sector collaboration.

The MLM requires funding to upgrade the current energy structures to improve its capability to accommodate the excess power generated by industries and businesses that have switched to solar power. The private sector will provide the financial muscle needed to upgrade the system—something the MLM cannot afford to do in the short term.

Counsellor Hubbard said that consumers are unlikely to experience any disruptions during the transition, with the long-term outlook promising improved service delivery.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.